This study analyzed the changes in consumption patterns of the poor. The issues this study is interested in are the burden low income households bear in meeting their basic needs. We also examined the factors, such as employment instability, transfer income, and debt, that influence the consumption level and the characteristics of household expenditure of the poor, using national accounts, micro survey data and panel data.
In Korea, the household consumption of the poor is restricted by their low income. But because of diversity of needs, the poor could be divided into several groups according to composite of consumption items. The main items are housing, health, and education. Public transfer is not enough yet so it’s influence is weak, unemployment and debt affect on consumption of low income household negatively. Debt make the poor afford the basic cost in short time but in long time it press on consumption of the poor. The social policy should support the poor be secure in the area like health, housing and education.