South Korea’s middle class continues to experience a prolonged decline in consumer spending, even as low- and high-income groups show signs of recovery, according to a new report from the Korea Chamber of Commerce and Industry (KCCI). The study, titled ‘Recent Consumption Trends and Implications,’ analysed real household expenditures across different income brackets, using 2019 (pre-pandemic) as a benchmark. The findings indicate that spending has weakened primarily in the second and third income quintiles – representing the core of the middle class.

In contrast, low-income households have maintained or even increased their spending due to government assistance, while high-income earners have seen a faster recovery thanks to asset growth and income normalisation. The study found that disposable income among middle-income households has been significantly constrained by rising household debt and interest payments, reducing their ability to spend.

A sector-by-sector analysis of consumer behaviour from 2020 to 2024 found that: clothing and footwear, personal items, and insurance spending remained weak, struggling to recover post-pandemic; Food, beverages, and household services, which saw a spike in demand during the pandemic, have declined since 2022, now trailing pre-pandemic levels.