Household income rebounds in Q2 on wage growth

South Korea's inflation-adjusted household income rebounded in the second quarter of 2024 on rising wages, data showed Thursday.The average income per household rose 3.5 percent on-year to 4.96 million won (US$3,715.9) per month in the April-June period, compared with 4.79 million won tallied a year earlier, according to the data from Statistics Korea.It marked the fourth straight quarterly increase, and the growth accelerated from the previous quarter's 1.4 percent.When adjusted for inflation, the income rose 0.8 percent on-year, a turnaround from a 1.6 percent fall the previous quarter.Job seekers visit a job fair in the western city of Incheon on Aug. 27, 2024. (Yonhap)Income earned through wages went up 3.9 percent on-year in the second quarter to an average of 3.15 million won per month.The monthly average income from business operations inched up 1.4 percent to 940,000 won, and transfer income backed by state support gained 2.4 percent to 735,000 won in the second quarter.Monthly househol d spending climbed 4.3 percent on-year to 3.81 million won in the second quarter, as people spent more on transportation, housing and foodstuffs, among other items, amid high inflation.The monthly disposable income per household rose 3.5 percent to 3.96 million won.Households' average propensity to consume, measured by the percentage of consumption expenditures out of disposable income, edged up 0.7 percentage point on-year to 71 percent in the second quarter, the data showed.The average monthly income of the bottom 20 percent income bracket increased 3.7 percent on-year to 1.16 million won.That of the people of the upper 20 percent group advanced 5.1 percent to an average of 10.65 million won per month.The distribution ratio, a key barometer of earnings equality, came to 5.36 in the first quarter, which means that the top 20 percent income bracket had 5.36 times more earnings than those in the bottom 20 percent over the cited period.It logged a slight increase from 5.34 tallied a year earlier. A higher ratio means wider inequality in income distribution.Source: Yonhap News Agency