This study examines the effect of livelihood benefits on household consumption in South Korea. Government support is provided as cash. Using data from the Korean Welfare Panel, the analysis compares the effect of adjusted gross income and livelihood benefits on food and non-food expenditures. Measures of elasticity, average propensity to consume (APC), and marginal propensity to consume (MPC) are applied. Results indicate food spending is unresponsive to either income source. Non-food expenditures increase; a larger increase is observed from livelihood benefits. The findings establish that households do not differentiate between livelihood benefits and other income sources. Cash transfers contribute to overall welfare but do not directly achieve the policy objective of increasing food expenditure.

Accepted Oral Presentation