Healthier Job Market Boosts S. Korea's Real Income

Improvements in South Korea's job market are pushing up the nation's real household income levels, allowing it to post the first upturn in three quarters.

The real household income for the second quarter (Q2) this year grew 0.5% from the same period last year for all households with more than two members, according to the Q2 report published by Statistics Korea on Friday.

The real income rate has been posting negative growth for two quarters straight, falling 1.2% in Q4 last year and 0.9% in Q1, but it managed to make a turnaround this quarter. Real income is an economic indicator that reflects price levels.

Q2 nominal household income rose 4.7% to 3.71 million won ($3,422) on average in Q2, marking a seventh consecutive month of increase. Higher employment figures helped push up wages by 4.8%, business incomes by 2.8%, property income by 17.5%, and transfer income by 7.9%.

The main reason for the gap between nominal and real income - 4.7% to 0.5% - is high inflation, as the nation's Q2 consumer inflation posts 4.2%.

Nominal household expenditure grew 4.8%, while real consumption rose 0.9%.

Disposable income, which excludes non-consumption expenses from overall income, amounted to 3.01 million won, which is 4.4% higher than Q2 last year, while monthly surplus rose 4.6% to 0.71 million won.

The ratio of the fifth income quintile to first quintile, a marker to gauge wealth distribution, scored 4.89. This is a considerable improvement, as distribution rates have been flooring since Q2 of 2004 (4.89).

[Written by Samji Chung / edited by Soyoung Chung] ▶ [화보] 신민아, 파격 망사옷 입고 소파에 누워

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