South Koreans Struggle with Household Finances Amid Rising Inflation

A recent survey conducted by the Federation of Korean Industries (FKI) reveals a concerning trend: 71.5% of South Koreans believe their household financial situation has worsened over the past year, with inflation being the primary culprit. This stark reality highlights the growing economic pressures faced by families across the nation.

Factors Contributing to Financial Strain

Inflation leads the charge as the most significant factor, with 71.9% of respondents pointing to it as their main financial burden. Other contributors include reduced real income, job shortages and instability, rising debt, and the ever-increasing costs of education, medical care, and housing.

Looking Ahead: A Bleak Financial Outlook

The future does not look bright for South Korean households. A staggering 64.2% of respondents anticipate further deterioration in their financial situation over the next year. Concerns over decreasing income and rising expenses are prevalent, with more than half of the respondents expecting their income to decline and expenses to increase.

Call for Policy Interventions

In response to these challenges, South Koreans are calling for decisive policy measures. Price stabilization for essential goods tops the list of priorities, followed by tailored job support for vulnerable groups and policies addressing the drivers of household debt. The FKI emphasizes the need for a business-friendly environment that promotes investment and job creation, alongside efforts to stabilize food prices.