[2022 National Audit] Statistics Korea to Separately Reflect Delivery Fees in Price Index from Next Year, "Owner-Occupied Housing Costs Under Review"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kim Hyewon] The government will separately announce the food delivery cost price index starting next year. The inclusion of owner-occupied housing costs will be reviewed with a view to the 2025 revision.

On the 17th, Statistics Korea stated in a report on the National Assembly's Planning and Finance Committee audit held at the Daejeon Government Complex, "We are reviewing a plan to separate delivery fees from the existing dining-out price items and plan to separately announce the delivery fee index starting next year." This measure is interpreted as a response to criticism that although the share of delivery food in household dining has increased since COVID-19, delivery fees attached to delivery food are excluded from the price index items, causing the statistics to not accurately reflect reality.

Regarding the inclusion of owner-occupied housing costs in the consumer price index, it was decided to review this with the 2025 revision in mind. When Rep. Yang Kyungsuk of the Democratic Party pointed out that "owner-occupied housing costs are not properly reflected, reducing the perceived accuracy of the price index," Statistics Korea Commissioner Han Hoon replied, "We are preparing to reflect that part in the 2025 revision." Including owner-occupied housing costs in the price index would reflect household burdens due to rising real estate prices. Some have argued that the owner-occupied housing cost, currently compiled as a supplementary indicator to the consumer price index, should be converted into a main indicator. However, there are also concerns that including owner-occupied housing costs in the consumer price index could excessively increase the weighting of housing costs in the index. Statistics Korea plans to decide on inclusion considering the socio-economic ripple effects.

Statistics Korea will add long-term household projections looking up to 100 years ahead, as well as the worst-case scenarios, when analyzing future population trends. Currently, only median and 30-year projections are provided, but going forward, high, low, and 100-year projections will be provided together.

Statistics Korea will also conduct in-depth debt analysis to support household debt measures. This will analyze debt characteristics by combining Statistics Korea data such as population, household, housing statistics registries, and housing ownership statistics databases with private credit company data on individual loan amounts and counts.

Regarding employment trend surveys, starting in 2024, the age group for the elderly aged 75 and over will be subdivided and announced. The new occupational status survey, including platform workers and special-type workers (teukgo), will be considered for publication after accumulating time series data for more than two years starting this year.

In the Household Finance and Welfare Survey, which is used to understand household assets and financial status, a new virtual asset item will be developed. The plan to additionally develop public and retirement pension reserves as supplementary indicators is also underway. Starting next year, new pension statistics expanded to include basic, disability, national, individual, and housing pensions will be compiled to comprehensively check post-retirement income.