Spending by South Korean households posted a record plunge in the first quarter.

According to data released Thursday by Statistics Korea, nominal household spending by families of more than two dipped six percent on-year to a monthly average of two-point-eight million won in the January to March period. It's the steepest drop since related data began to be compiled in 2003.

By category, South Koreans were particularly spending less on clothing and shoes, education, culture and entertainment.

The lowest-income earners have tightened the purse strings the most with monthly expenditures dropping ten percent in the first quarter to one-point-48 million won. Meanwhile, household income has increased by the sharpest jump for the top 20 percent income class, further widening the wealth gap. 

Statistics Korea Commissioner Kang Shin-wook said the figures clearly reflect the impact of COVID-19 and can be compared to the financial crises in 1998 and 2008.