Household Spending for services Equal to Level
of Advanced Nations
With government's strong regulations and higher taxations implemented in the second half of the year, it was believed that household spending for services would be curbed. However, some market observers disagreed, saying that since the public’s basic needs for better education, medical services, and entertainment are snowballing, household expenditures for better services rapidly grows to be identical to the level of advanced nations.
This phenomenon is propelled due to the fact that, since the level of domestic service sectors is lower than the public’s expectation, much expenditure for service will flow to overseas service sectors, causing snowballing deficits for households who want better services.
According to data released by the Bank of Korea yesterday, expenditures for better services rose consecutively per household, pegged at 46.1% in 1990, 51.8% in 1995, 53.4% in 2002, and 56.6% last year. For the US, it was 55.1% in 1990, 57.9% in 1995, 58.3% in 2000, and 59.0% in 2005, showing it was gradually up. Compared to the US, Korean consumption expenditure for services rapidly increased in the 1990s. In Canada, it was 51.0% in 2002, Holland was 48.6% and Japan was 56.4% in 2002.
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 / 입력시간: 2006. 05.24. 09:11
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