Changes in the food expenditure of Korean household

Abstract

This research examined the level and changes in household food expenditure in Korea using socio‐economic and demographic factors. The data from the Family Income and Expenditure Survey between 1994 to 2009 produced by Korean National Statistical Office were used. The proportion of the food expenditure was decreased during this period of time, while that of eating‐out expenses were increased. Food, clothing, and housing expenditures were decreased, while expenditure for education, health care, and communication were increased. Economic factors including economic crisis (e.g., 1997 economic crisis, 2008 global financial crisis) affects food expenditure. The relative price of food increased about 12% during this period of time and the price is a significant factor affecting food expenditure. It was also found that demographic factors including the age of household head, household income, household size, household type, number of children were significant factors affecting food expenditure in Korean household. Findings on these food consumption analyses are expected to provide useful information understanding Korean consumers¡ expenditure patterns and developing appropriate policy.