South Korea will revise its consumer price index (CPI) basket in a scheduled reshuffle, adding digital-era expenditures such as software and cloud subscription fees, smartwatch-related costs, and electric vehicle charging fees, the Ministry of Data and Statistics announced on Tuesday, 7 July. Full details of the restructuring are set to be disclosed in December.

What Is Changing in the CPI Basket

The overhaul targets a sharper reflection of how South Korean consumers actually spend in the digital economy. New additions include meal kit costs, online shopping subscription fees, and malatang — a Chinese hot-pot dish that has surged in popularity across the country in recent years.

At the same time, items that have fallen out of everyday consumption will be dropped. Among those being removed is bracken fern, a traditional ingredient used in Korean side dishes, which has seen a significant decline in consumer demand.

Public Consultation Before Finalisation

South Korea's statistics agency plans to gather public opinion through mid-July before finalising the basket changes. This consultative step is part of the standard process for CPI revisions, ensuring the updated index reflects a broad cross-section of consumer behaviour rather than narrow sectoral trends.

Notably, this reshuffle is part of a regular cycle of adjustments — not an emergency revision — but its emphasis on digital subscriptions and smart-device costs signals a structural acknowledgement that consumption patterns have shifted decisively toward the digital sector.

Corporate Surplus Hits Record High on Semiconductor Boom

Separately, data released by the Bank of Korea (BOK) on the same day showed that excess funds held by South Korean businesses reached an all-time high in the first quarter of 2025. Net financial funds held by non-financial corporations — calculated as financial assets minus financial liabilities — totalled 20.8 trillion won (approximately US$13.6 billion) at the end of March, up sharply from 100 billion won three months earlier.

This is the highest quarterly figure since the BOK began compiling the data in 2009. A BOK official attributed the surge directly to semiconductor exports: 'Companies are mainly debtors as they usually borrow more money for investment and other business purposes than they earn. In the first quarter, however, their net profits surged due to semiconductor exports, resulting in excess funds.'

Household Finances Also Strengthen

Household net financial funds rose to 79.2 trillion won in the first quarter, up from 67 trillion won in the preceding quarter, partly driven by year-end bonuses and a reduced supply of new apartments. Total financial assets held by households and non-profit organisations reached 6,417.1 trillion won at end-March — an increase of 209.4 trillion won from three months earlier.

Household debt, however, also climbed, rising by 26 trillion won to 2,466.8 trillion won. The ratio of financial assets to liabilities for households stood at 2.6, suggesting that asset growth continues to outpace debt accumulation for now.

What to Watch Next

The finalised CPI basket changes will be announced in December, with the updated index expected to offer a more accurate read of inflation in a consumption landscape increasingly shaped by digital services. On the corporate side, analysts will be watching whether semiconductor-driven surpluses translate into fresh capital investment or remain parked as financial assets.