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Average monthly household income in S. Korea at around US$ 3,600 in Q2; 12% increase on-year Updated: 2022-08-19 04:56:01 KST

The average income of households rose significantly in Q2.
Spending also increased, but not by much.
Consumers were apparently saving more because of economic uncertainties.
Lee Rae-hyun helps us look beyond the digits.

People in South Korea appear to have earned more money in the second quarter of 2022, but less of that increase was spent.
That's according to a survey of around 7,2-hundred households, released on Wednesday by Statistics Korea.
The report shows that South Korea's average household income stood at 4 million 831 thousand Korean won a month, an increase of more than 12 percent on-year the biggest jump since related data was first compiled in 2006.
At the current rate, that's a monthly income of around 36-hundred U.S. dollars.
Statistics Korea says this is largely due to a rise in the rate of employment and an increase in the service production index.

Income across all brackets grew in the second quarter compared to the previous year, on the back of the government'a COVID-19 relief funds.
Income for those in the lowest 20 percent rose by over 16 percent on-year, the most among all income brackets.

"There was an increase in the number of small business owners with high income in the second quarter, thanks to the government's COVID-19 recovery funds given to small businesses."

Meanwhile, average monthly household spending came to 2-million 619 thousand won, up 5.8 percent on-year thanks to the lifting of social distancing measures.
That's about 2-thousand dollars a month.
Although this is an on-year rise, the average propensity to consume which indicates the percentage of income that is spent rather than saved dropped 5.2 percentage points on-year to 66.4.
This is the lowest for any second quarter.
Statistics Korea also said the rise in average monthly household spending reflects higher consumer prices, not necessarily a willingness to spend more money.
One expert said low household spending is expected to last for a bit longer.

"It seems quite obvious that the average household spending was low compared to the high income levels. This is due to high consumer prices, ongoing economic uncertainties, and high interest rate hikes and so low spending is forecast to remain."

He added although global prices of oil and grain are expected to ease in recent months, household spending is expected to be low for at least a year.
Lee Rae-hyun, Arirang News.
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