Young people need to spend more on food, housing

Young people in their 20s and 30s have to spend more on food and housing, according to the report released April 11.

The author of the study Kim Pil-su, a senior adviser of Hyundai Research Institute, said that there needs to be more jobs for the 20s and 30s, and also measures to lessen the financial burden of purchasing daily necessities.

Engel's coefficient, the numbers which show the proportion of food out of total daily expenses, kept rising since 2009. The Schuwabe index, the numbers which shows the proportion of housing, rose, too.

The stagnated income was the main factor of the declining life standards of the young people, Kim argued.

The percentage of rise in income was 7.5 for people aged between 40 and 50, whereas for people aged between 20 and 30, it was only 1.2 percent.

The price increase rate for food is much steeper than the consumer price index, which is responsible for worsening the situation, he added.

The Korea Times