Spending dropped sharply on areas related to quality of life, such as clothing and recreational activities. Education-related expenditures also fell amid a shrinking school-age population.
According to the ministry, the average monthly household spending was 2.94 million Korean won, up 1.7 percent from a year earlier, but real consumption, adjusted for inflation, actually fell 0.4 percent.
By category, households appeared to prioritize essentials while cutting back on discretionary spending, with declines most pronounced in household goods and services (-6.1 percent), food and beverages (-1.1 percent), and clothing (-2.1 percent).
Spending on recreational and leisure activities including travel and books, as well as indulgences like tobacco and alcohol, also declined.
Notably, in a country where parents are highly enthusiastic about academic achievement, spending on children's education fell 4.9 percent. The ministry attributed the decline to rising costs of private crammers, with the shrinking school-age population also playing a role.
Consumption weakened among most middle-income households. Spending among the top 20 percent of earners rose 6.1 percent, while spending in lower income brackets declined.
"The decline in education spending appears to reflect a shrinking school-age population, resulting in the overall drop in consumption," said Seo Ji-hyun, a ministry official.
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