South Korea: cost of living

What is South Korea's core inflation rate?

South Korean consumer prices excluding food and energy were 2.8% higher in September 2026 than a year earlier, according to the Ministry of Data and Statistics' consumer price index release of 2 October 2026. In August the rate was 3.4%. Headline inflation, including food and energy, was 2.9%.

Removing food and energy, whose prices swing with harvests and world markets, shows the underlying trend. Core prices fell 0.1% from August. The index stood at 116.53 (2020=100), so core prices were about 16.5% higher than in 2020.

Official sources: Ministry of Data and Statistics: Consumer Price Index, September 2026 · Consumer Price Index, September 2026 (PDF)

How fast are food prices rising in South Korea?

Food and non-alcoholic drink prices in South Korea were 1.0% higher in September 2026 than a year earlier, according to the Ministry of Data and Statistics' consumer price index release. They rose 1.4% from August.

A year earlier, in September 2025, food prices had risen 3.3% on the year. The food index stood at 130.09 (2020=100), higher than the all-items index of 120.43, which means food prices have risen faster than prices overall since 2020. Food carries a weight of 142 per 1,000 in the index.

Official sources: Ministry of Data and Statistics: Consumer Price Index, September 2026

How fast are transport prices rising in South Korea?

Transport prices in South Korea were 7.7% higher in September 2026 than a year earlier, the largest rise of any spending category, according to the Ministry of Data and Statistics' consumer price index release. They fell 0.4% from August.

Recreation and culture rose 5.8% and miscellaneous goods and services 4.1%. Housing, water, electricity and gas rose 1.9% and education 1.6%. Transport has a weight of 110.6 per 1,000 in the index and includes fuel, vehicles and fares.

Official sources: Ministry of Data and Statistics: Consumer Price Index, September 2026

How much do South Korean households spend?

South Korean households spent an average of 2.932 million won a month on consumption in the second quarter of 2026, 3.4% more than a year earlier, according to the Ministry of Data and Statistics' Household Income and Expenditure Trends. Taxes, social contributions and interest added 1.06 million won.

Spending on household equipment and housekeeping services rose 17.9%, recreation and culture 7.6% and restaurants and hotels 3.5%, while transport fell 0.5%. Households spent 69.2% of disposable income on consumption, 1.2 points less than a year earlier. Amounts are in current won.

Official sources: Ministry of Data and Statistics: Household Income and Expenditure Trends, Q2 2026

How are low-income South Korean households coping with costs?

The lowest-income fifth of South Korean households spent 125.3% of their disposable income on consumption in the second quarter of 2026, according to the Ministry of Data and Statistics' Household Income and Expenditure Trends. That was 2.7 points lower than a year earlier. For the top fifth the share was 60.3%.

A share above 100% means spending exceeded income, which households cover from savings, borrowing or help outside the survey's income measure. The bottom fifth spent 1.372 million won a month, with food and non-alcoholic drink taking the largest share at 21.1%. Many households in this group are headed by older people: the average age of the household head was 62.2.

Official sources: Ministry of Data and Statistics: Household Income and Expenditure Trends, Q2 2026

What is South Korea's inflation rate?

In 2025, consumer price inflation in South Korea was 2.1%, according to the IMF. Since 2005 it has ranged from 0.4% (2019) to 5.1% (2022). Across East Asia & Pacific the middle value was 2.2%, and South Korea placed 13th highest of 24. Of 165 countries with 2025 data, 108th highest.

How much do people in South Korea spend?

$17,853: that is household consumption per person in South Korea for 2025, according to the World Bank. No year since 2005 has been higher. East Asia & Pacific median: $3,794; South Korea is 3rd highest of 12. World rank, highest first: 21st of 124.

What share of people in South Korea live in extreme poverty?

The World Bank puts the share of people living on less than $3.00 a day in South Korea at 0.1% in 2021. It is the bottom of the series, which starts in 2006. It is 4th highest of 7 in East Asia & Pacific, where the median is 0.1%. World rank, highest first: 64th of 80.

How unequal are incomes in South Korea?

32.9: that is the Gini index in South Korea for 2021, according to the World Bank. Its high point since 2006 was 2016, at 35.2; its low point was 2014, at 31.2. It is 6th highest of 7 in East Asia & Pacific, where the median is 35.5. Of 80 countries with 2021 data, 48th highest.

How many people in South Korea go hungry?

The FAO puts moderate or severe food insecurity in South Korea at 5.8% in 2024. That is the highest since at least 2015. East Asia & Pacific median: 15.4%; South Korea is 14th highest of 17. World rank, highest first: 120th of 135.