More than half of South Koreans plan to increase their consumer spending this year compared with last year, according to a new survey, though the findings highlight a growing divide between higher- and lower-income households.
A nationwide poll conducted by Mono Research for the Korea Enterprises Federation found that 54.8% of respondents plan to increase spending in 2026, while 45.2% expect to cut back. The survey was conducted last month among 1,000 adults nationwide.
Spending intentions varied sharply by income level. Households in the top 60% of the income distribution were more likely to plan higher spending, while those in the bottom 40% said they expect to reduce consumption, underscoring uneven confidence in household finances.
Among respondents planning to spend more, the most common response was an increase of up to 5%, followed by increases of 5% to 10% and 10% to 15%. Those planning to cut spending most frequently cited reductions of up to 5%, with smaller shares anticipating steeper cutbacks.
Lower-income households showed the greatest caution. In the bottom income quintile, more than 60% said they plan to reduce spending, compared with roughly half of households in the second-lowest income group. By contrast, a plurality of middle- and upper-income respondents said they expect to increase consumption this year.
Respondents planning to raise spending cited changes in lifestyle and consumer values as the most common reason, followed by expectations of improved employment prospects or higher labor income and greater price stability. Those intending to cut spending pointed primarily to persistently high inflation, concerns about job security or declining wages, and weaker asset-related income.
When asked about the biggest risks to consumption in 2026, 44.1% cited continued high inflation and currency volatility. Other concerns included rising taxes and public charges, as well as household debt and broader financial uncertainty.
Despite relatively optimistic spending plans, respondents were cautious about the timing of a broader recovery. More than half said a meaningful pickup in consumption would occur only in the second half of 2026 or later, with many pushing that timeline into 2027 or beyond.
Financial capacity remains a key constraint. More than 40% of respondents said their household finances are insufficient to support increased spending, while fewer than one in ten said they feel financially comfortable enough to expand consumption.
The Korea Enterprises Federation warned that if spending intentions fail to translate into actual outlays—particularly among lower-income households—the impact on domestic demand could be limited.
“Boosting disposable income and improving consumption conditions for lower-income groups will be critical,” said Lee Sang-ho, head of economic and industrial policy at the federation. He called for measures such as expanded tax deductions, temporary reductions in consumption-related taxes, and structural reforms in the retail sector to sustain a recovery in domestic demand.
