Demographic Change and Consumption Behavior: The Evolving Structure of Korean Households

Demographic structure refers to the qualitative aspects of a population, including gender, age, place of residence and the social and economic distribution. These demographic characteristics affect society, culture and the economy, so any changes in demographic structure, which mean changes in demographic characteristics, are also important factors in social, cultural and economic changes. One of the most remarkable changes in demographic structure in recent years is the increase in single-person households and the aging of the population. According to Cho et al. (2015), as the population grays, there is a possibility that the elderly will lead the domestic market in the future. If this comes to pass, services and goods preferred by the elderly will be developed, and related industries will be activated. In terms of consumption behavior, which is the subject of this study, aging is important, but it is more important to determine what kind of families, or households, the elderly comprise, how they spend on a family basis. This is because a significant portion of consumption spending, especially consumption expenditure on goods, is often made on a family (household) basis. In this study, we examine the demographic changes in Korea by focusing on households, and examine the economic situation and consumption behavior of households.