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SEOUL – A recent report highlights the deepening economic distress of South Koreans in their 20s and 30s, as essential expenses for food and housing now account for nearly 50% of their total consumption. This trend stems from a combination of stagnant income growth due to a cooling labor market and rapidly rising living costs.

According to the Household Financial Welfare Survey, the average consumption expenditure for households headed by those under 39 was 28.98 million won last year, a 0.9% decrease from 2023. This marks the first decline in four years since the pandemic. While overall spending dropped, essential costs surged: food expenses reached 9.81 million won and housing costs hit 4.48 million won. Together, these two categories represent 49.3% of total spending, the highest level since data collection began in 2016.

The primary driver of this squeezed purchasing power is sluggish income growth. The average income for this age group grew by only 1.0% last year, significantly lagging behind the national average of 3.4%. Furthermore, the number of "economically inactive" young people—those neither working nor seeking jobs—reached a record high of 719,000. In response, the government has pledged to strengthen AI-based vocational training and customized employment policies to revitalize the youth labor market.