China Financial Daily

South Korea’s household income declines in Q3
News on November 13, 2009 — South Korea’s average household income in the third quarter of 2009 fell for the second straight quarter, adding to worries that the economic slowdown may be further protracted, a government report showed Friday.

According to the report by the Statistics Korea, the average income of households with two family members or above totaled 3.45 million won, or 2,972 U.S. dollars, during the July-September period, down 1.4 percent from a year earlier. If adjusted for inflation, the average household income stood at 3.05 million won, or 2,627 U.S. dollars marking an on-year fall of 3.3 percent.

The adjusted figure stayed on a downward slope for the fourth straight quarter, the data said. Disposable income also fell 0.9 percent annually to 2.83 million won, or 2,437 U.S. dollars. The average household spending, on the other hand, recovered in the third quarter, scoring 2.2 million won, or 1,892 U.S. dollars, up 3.0 percent from a year ago. The figure adjusted for inflation also moved up 1.5 percent on year to 1.95 million won, 1,680 U.S. dollars.

Although expenditure on health care, transportation, and entertainment jumped 12.4 percent, 11.1 percent, and 16.3 percent, respectively, those on foods and alcoholic beverage goods dropped 3.9 percent and 10.9 percent, respectively. The data came amid Asia’s fourth-largest economy showing signs of recovery with its GDP growth rate in the third quarter hitting a seven-year high of 2.9 percent. “We will continuously push for measures to vitalize the economy so that brisk growth data can lead to stabilizing the life of mid-income households,” a government official said.