South Koreans Cut Food Budget—But It's Not About Going On A Diet

South Koreans have been trimming their food budget in recent years, and the trend seems to be continuing into 2025. They have not only cut back on grocery spending, but they have also refrained from eating out. You might think it has something to do with going on a diet. But the truth is, this phenomenon is rooted in factors far beyond dietary choices.

So, what are these factors? Are people in Korea simply becoming more frugal, or is there something more serious at play? Keep reading to learn what’s motivating Koreans to reduce their food expenses.

South Koreans Reduce Food Budget in 2025

According to a report Statistics Korea released on April 30, the restaurant production index dropped 0.7% in 2023 and plummeted 1.9% in 2024. The retail sales index for food and beverages also saw a decline of 3% and 1.5% in 2023 and 2024, respectively.

The downward trend appears to continue in the first quarter of 2025. The restaurant production index fell 3.4% compared to the same period last year. Similarly, the retail sales index shrank 0.3%. The restaurant production index indicates dining-out consumption, while the retail sales index reflects spending on home meals. This is the first time since Statistics Korea started collecting data in 2005 that the two categories have gone down at the same time for two consecutive years.

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Eating at home and dining out usually have opposite directions. When people often cook at home, they tend to eat out less, and vice versa. However, in the post-pandemic period with rising prices, South Koreans are reducing their food budget on both dining and home meals.

One example is an employee in his 50s surnamed Sohn. He shared with Korea JoongAng Daily that his family has cut their dining out in half. They have also started seeking out promotions like “buy one, get one free” deals to save money. Discounted or bulk food items are also what they prefer now.

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Jung KyuChul described the simultaneous decline in both retail food sales and dining out as an “unusual trend.” He said that it shows just how much domestic spending has dropped. Jung works at the Korea Development Institute as the head of macroeconomic analysis and economic forecasting.

The dual decrease normally occurs during economic slumps, when families reduce spending. This highlights the tough financial challenges that small business owners face. Since households cut back on spending, small businesses see fewer sales and might have too many food items left over.

Why South Koreans Are Trimming Their Family’s Food Budget

For two years straight, people in South Korea have been spending less on food. But it’s not just about watching their weight—economic factors are a major driver of this trend. That’s what we’ll explore in this section.