June 29, 2022

The South Korean household has been reported to grow in the July-September period at the fastest rate from the previous year. Such a recovery comes due to economic recovery and the government’s emergency relief funds.

According to the data from Statistics Korea, the average household in the July-September period earned 4.73 million won (US$4,000) per month, up 8 percent from the previous year.

Household income data in Q3

• The country’s job recovery and an improvement in pandemic-hit service sectors led household income to rise in the cited quarter.
• The government with an extra budget in emergency relief funds had handed out 11 trillion won to people falling in the bottom 88 percent income bracket.
• In the reporting quarter, the monthly average transfer income sponsored by state support rose 30.4 percent on-year to 583,000 won.
• In the cited quarter, the job market improved amid the economic recovery, thus leading household income earned through wages and business operations to rise.
• Wage income per month rose 6.2 percent on-year to an average of 2.95 million won.
• The monthly average income from business operations rose 3.7 percent to 885,000 won.
• Improving consumer sentiment and the vaccine rollout led household spending rise in the same period.
• The average household per month spent 3.5 million won, up 6.6 percent from the previous year.
• In the cited period, the country’s monthly household consumption expenditure was recorded at an average of 2.54 million won, up 4.9 percent from a year ago.
• The average monthly income of the bottom 20 percent income bracket in October rose 21.5 percent on-year to 1.14 million won.
• In the reporting quarter, households in the upper 20 percent income bracket earned 10 million won, up 5.7 percent from a year earlier.
• In the third quarter, the country’s distribution ratio for disposable income reached 5.34, down from 5.92 a year ago.
• The above readings meant that the top 20 percent income bracket had 5.34 times more earnings over the cited period than those in the bottom 20 percent.
• The country in October for the eighth straight month recorded job additions, in the latest sign that despite the fourth wave of the pandemic the economic recovery continues.