Food Inflation Places Heavier Burden on Low-Income Individuals in South Korea
Rise in Food Expenses
According to recent government data, food expenses for the lowest income class in South Korea have risen nearly 40% over the past five years, placing a heavier financial burden on low-income individuals. The data, cited by Yonhap, shows that people in the bottom 20% of the income bracket spent a monthly average of 434,000 won (US$300) on food in 2024, a 38.6% increase from 313,000 won in 2019.
Household Food Expenses
South Korea’s overall household food expenses rose by 175,000 won, or 26.3%, to an average of 841,000 won over the five years. Those in the highest income group, in particular, spent 1.32 million won on food, a 27.1% increase from 1.04 million won over the same period.
Drivers of Food Price Inflation
The rise in food expenses was driven by steep inflation in food prices in the country. The food and beverage price index reached 122.9 in 2024, up 28.3% from 95.8 in 2019, exceeding the 14.8% increase in South Korea’s entire consumer price index during the five-year period. Moreover, the price index for food services, which includes restaurant and catering prices, rose by 22% from 99.2 to 121 over the cited period.
Impact on Low-Income Individuals
Experts note that the sharp rise in food prices has had a greater impact on lower-income individuals, as they typically spend a larger percentage of their income on food compared with the higher-income group. According to separate Statistics Korea data, those in the lowest income bracket spent 45% of their disposable income on food, while the top-income group set aside only 15%.
Conclusion
The rise in food prices in South Korea has placed a significant burden on low-income individuals, who are already struggling to make ends meet. As the cost of living continues to increase, it is essential for policymakers to develop strategies to address this issue and ensure that all individuals have access to affordable and nutritious food.
Frequently Asked Questions
- What is the current food and beverage price index in South Korea?
- The food and beverage price index reached 122.9 in 2024, up 28.3% from 95.8 in 2019.
- How has the price index for food services, including restaurant and catering prices, changed over the past five years?
- The price index for food services rose by 22% from 99.2 to 121 over the cited period.
- What percentage of disposable income do low-income individuals spend on food?
- Those in the lowest income bracket spend 45% of their disposable income on food, while the top-income group set aside only 15%.