In the first quarter of this year, household spending in South Korea fell by the largest margin in more than four years.

According to the latest household trends report released by Statistics Korea on Thursday, the average monthly consumption expenditure per household in the January to March period was two-point-95 million won, or roughly two-thousand-one-hundred U.S. dollars, up one-point-four percent from last year.

Although consumer spending per household increased on-year, real consumption excluding inflation decreased by zero-point-seven percent.

It marks the first decline in seven quarters and the largest decline since the fourth quarter of 2020 during the COVID-19 pandemic.

However, consumption among low-income households increased significantly, with those in the bottom 20th percentile income bracket seeing their overall consumption increase three-point-six percent as they spent heavily in various areas such as alcohol and tobacco, education, and food and lodging.

Meanwhile, the average income of households rose four-point-five percent on-year to five-point-35 million won. 

The agency noted that despite income growth, households have not spent as much due in part to economic uncertainties such as the emergency martial law crisis of December last year and U.S. tariff hikes.