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Basic living subsidy recipients get cooked by rising food prices

Published: 08 Jul. 2025, 17:25 Updated: 08 Jul. 2025, 17:29

A resident rests in shantytown of one-room dwellings in Yeongdeungpo District, western Seoul, on June 23. [NEWS1]

For Korea’s poorest, even a bag of fruit can break the bank.

With inflation outpacing government aid, basic livelihood recipients say they’re being priced out of survival — forced to skip meals, stay home and sacrifice dignity just to make it through the month.

The cost of food has simply become unbearable for people depending on basic livelihood subsidies, said a recipient in their 60s who wished to remain anonymous.

“I wear clothes and shoes until they fall apart,” they said. “You’d think the subsidies could cover a month’s expenses, but they don’t. Once you start spending, you realize it’s not enough.

“Subway fares are going up again. Prices have just gotten out of control. There’s nothing I can afford outside. If I buy just a bit of fruit, there goes my subsidy.”

Soaring inflation is hitting Korea’s most vulnerable the hardest. Although many recipients of government support try to cut back on food and limit going out, their efforts are often in vain. Some survive on less than 10,000 won ($7) a day by eating instant noodles. Yet their budgets remain in the red.

On Wednesday, Democratic Party lawmaker Seo Mi-hwa and a local civic group released the results of a survey conducted on 20 households receiving basic livelihood subsidies. The study was conducted by Kim Jun-hee, a senior researcher at the Korea Center for City and Environment Research, who analyzed 57 days of household spending logs from recipients in Seoul, Daegu, Incheon and North Chungcheong between February and April.

Half of the 20 households surveyed reported monthly deficits. Some were as low as 15,000 won a month, whereas one household ran a deficit of 3.14 million won due to a child’s wedding expenses. The other 10 households barely avoided deficits by slashing food expenses. Four households went without air conditioning altogether.

Food accounted for the largest portion of spending. For single-person households, 18 out of the 20 surveyed, average monthly food expenses were around 330,000 won, or approximately 10,836 won per day.

Many avoided large supermarkets, opting instead for traditional markets, street vendors and near-expiry discounted goods. One 38-year-old recipient reported eating instant noodles 46 times over 57 days — about 26 percent of their meals. They relied on church-run soup kitchens for rice.

“I used to buy vegetables regularly, but now I can’t afford a bundle of spinach that costs 6,000 to 7,000 won," said a woman in her 50s who wished to remain anonymous. "It’s surprising I can still get by. The subsidy remains the same, but costs rise. I feel like a magician trying to make ends meet.”

Of all the meals that the 60-something woman had over 57 days, only 30 meals included anything beyond basic side dishes like kimchi. Roughly half the households surveyed had difficulty maintaining a balanced diet.

Shoppers in Mangwon Market in Mapo District, western Seoul, on July 4. [NEWS1]

Housing costs remain a burden despite receiving housing benefits, which amount to 352,000 won per month for a single-person household in Seoul. These stipends often fall short of covering rent, maintenance fees and utility bills. One 49-year-old said they had to reduce their food expenses to save for a security deposit.

"I'm so worried about a 1 million won deposit increase due in April next year," the 50-year-old woman said. "I’ve lost sleep over it."

To avoid financial strain, many rarely leave their homes.

“I can’t keep asking others to buy me meals or coffee," she said. "Today’s my turn to treat them, but I just can’t afford it. Relationships just feel so burdensome now.”

Some recipients said they spend nearly all their time watching TV at home. A 44-year-old man in Daegu said he bought a new pair of winter pants and a jacket for the first time in five years.

Many said they would like the minimum living expenses to be between 1 million and 1.5 million won per month, averaging 1.2 million won. Even with maximum living and housing benefits, recipients said it’s not enough.

Although the previous Yoon Suk Yeol administration raised the median income threshold used to determine eligibility for subsidies, activists who conducted the survey noted that the gap between the average spending of all single-person households of 1.63 million won and the subsidy amount, 760,000 won, remains too wide. They urged reforms to more realistically reflect living costs and the complete elimination of family support obligations.

Applicants are disqualified from receiving aid in Korea if they have financially capable family members, though this law has been eased in recent years to expand access.

"Revisions are needed in how assets and vehicles are factored into determining eligibility for subsidies," said Kim Tae-wan, a senior researcher at the Korea Institute for Health and Social Affairs.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY SHIN SUNG-SIK [[email protected]]