Using household- and individual-level panel data of KLIPS(Korean Labor and Income Panel Study) for 1998-2007, this study investigates the determinants of life satisfaction. Descriptive statistics show increasing trend of life satisfaction. There are regional varieties of the life satisfaction -- life satisfaction of Jeonbuk, Daegu and Daejeon has risen while that of Ulsan, Chungbuk and Busan tends to decrease or remain the same. The estimation results of random effects ordered panel model show several implications. First, life satisfaction is positively related with own income(consumption) while it is negatively related with regional average income. This result strongly support the relative income hypothesis of consumption function. Second, age effect shows concave relation with life satisfaction. Third, a female tends to show relatively higher degree of life satisfaction. Fourth, marriage, own housing, household head, the number of children under 15 years old and the wage earner tend to have positive relation with life satisfaction while the self-employed show negative relation. Finally, there is a strong support for broaden-and-build theory of positive emotions as proven by the positive and significant coefficient for lagged life satisfaction variable.