S. Korea's real consumption falls in Q1 2025 despite rising income

South Korea's household real consumption in the first quarter of 2025 dropped for the first time in 7 quarters.

According to Statistics Korea on Thursday, household consumption rose by 1-point-4 percent in the first quarter of 2025.

However, inflation-adjusted spending fell by point-7 percent, marking the largest real decline since the fourth quarter of 2020 during the COVID pandemic.

Pundits say uncertainties like last December's martial law declaration, and U.S. tariff policies might have weakened consumer confidence in spending, despite a rise in household income.