A Study on the core expenditure burden of households in Korea and eight European countries

Abstract

In this study, we defined ‘essential expenditure’ as the sum of spending on such essential household items as housing, water, energy, healthcare, education, transportation, and telecommunications. We then compared the level of essential expenditure in Korea and eight European countries. For Korea, Household Income and Expenditure Survey data was used. For European countries, the Household Budget Survey data was used. Essential expenditure as a share of total household consumption expenditure was higher in Korea (47.2%) than in any other country examined. Although Korean households were found to spend only half as much on housing, water, energy (11.2%) as households in the other countries, expenditures on education (11.1%), telecommunications (5.7%), and healthcare (6.8%) were higher in Korea than in any other country in comparison. In particular, the fact that Korea's education cost is about 10%p higher than those of other countries has pressed the burden of spending on Korean households. In order to help reduce the essential living expenses for Korean households, we emphasize the need for strengthening the public aspect of housing, water, energy, healthcare, education, transportation and telecommunications.