Cash transfer policy and food-related expenditure in South Korea: assessing expenditure responses to the livelihood benefit programme

This study examines whether the cash-based livelihood benefit in South Korea is associated with food-related expenditure among low-income households, treating such expenditure as an economic-access indicator related to food security rather than as a direct measure of diet quality, nutritional adequacy, calorie adequacy, dietary diversity, or household food insecurity experiences. Cash transfers account for 76.8% of total agricultural food support in South Korea, raising a policy question about whether a cash-dominant support structure produces food-specific spending responses. Using cross-sectional data from the 19th Korean Welfare Panel Study (KoWePS) conducted in 2024, this study estimates income elasticities and marginal propensities to consume (MPCs) for food, groceries, dining out, and non-food expenditure, comparing responses to adjusted gross income and livelihood benefits. Results show that livelihood benefits are not significantly associated with higher food expenditure, whereas the non-food MPC is significantly higher. When food expenditure is disaggregated, the grocery MPC does not differ significantly, while dining-out MPC is significantly lower for livelihood benefits. These findings suggest cash-based livelihood benefits function more as a flexible general welfare instrument than a targeted food-expenditure instrument. The study discusses food vouchers or hybrid models as policy options requiring empirical testing.