South Korea’s Household Income Soars for Seven Straight Quarters

(MENAFN) South Korea has experienced a continuous rise in household income for seven straight quarters, driven primarily by gains in wages and business earnings, according to new data released Thursday by Statistics Korea.

For the January to March period, the average monthly household income, including families with at least one member, rose by 4.5% year-over-year to 5,351,000 won (approximately $3,870). This marks a persistent upward trend starting from the third quarter of 2023.

Nominal wages increased by 3.7% to 3,412,000 won ($2,466) during the first quarter, accelerating from a 2.3% rise in the previous quarter. Meanwhile, business income grew by 3.0% to 902,000 won ($652), following a stronger 5.5% increase in the prior quarter.

Property-related earnings jumped 6.2%, and transfer income—such as social benefits—rose by 7.5% during the same period. When adjusted for inflation, real household income increased by 2.3% compared to a year ago.

Household spending averaged 4,072,000 won ($2,943) per month in the first quarter, climbing 2.2% from the previous year.

Consumer spending edged up 1.4% to 2,950,000 won ($2,132), a slower pace than the 2.5% growth seen in the previous quarter. On a real inflation-adjusted basis, consumption declined by 0.7%, marking its first drop since the second quarter of 2023.

Looking closer, nominal expenses rose for housing, utilities, accommodation, dining out, healthcare, and food and beverages. Conversely, spending on alcohol, tobacco, clothing, footwear, and transportation fell by single-digit percentages.

Non-consumption costs—covering taxes, social insurance, and interest payments—rose 4.4% year-on-year to 1,123,000 won ($812) in the first quarter.

Interest payments specifically dropped 6.9%, but recurring tax payments surged 14.0% during the same period.

Disposable income, calculated as nominal income minus non-consumption costs, climbed 4.5% from last year to 4,228,000 won ($3,054) monthly.

The consumption propensity—measuring how much of disposable income households spend—declined by 2.1 percentage points, settling at 69.8%.

However, the income divide among households expanded significantly in the first quarter.
The bottom 20% income group saw their average monthly income shrink by 1.5% to 1,140,000 won ($823), while the top 20% experienced a 5.6% increase to 11,884,000 won ($8,578).

In terms of spending, the lowest income bracket increased consumption by 3.6% to 1,358,000 won ($980), whereas the highest income bracket’s expenditure rose 2.1% to 5,204,000 won ($3,755).

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