Government "Income Distribution Indicators Worsen"... Household Trends Review

Statistics Korea Announces '2020 Q3 Household Trends Survey' on the 19th

[Asia Economy Reporter Jang Sehee] The government held a meeting of related ministers (Green Room Meeting) to review the income distribution situation and discuss future response directions.

On the 19th, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki held the Green Room Meeting at the Government Seoul Office to review the income distribution situation based on the third quarter Household Income and Expenditure Survey. The meeting was attended by Minister of Employment and Labor Lee Jae-gap, Director of the Office for Government Policy Coordination Koo Yoon-chul, Commissioner of Statistics Korea Kang Shin-wook, and Senior Secretary for Economic Affairs to the President Lee Ho-seung.

According to the '2020 3rd Quarter Household Income and Expenditure Survey' released by Statistics Korea on the 19th, the income of the first quintile decreased by 1.1% compared to the previous year, while the income of the fifth quintile increased by 2.9%, worsening the distribution indicators. While household earned income from labor and business decreased, government transfer income increased, resulting in a total income increase of 1.6% compared to the previous year.

The 3rd quarter equivalized disposable income quintile ratio was 4.88 times, up 0.22 points from 4.66 times in the same period last year. It widened by 0.5 points compared to the previous quarter (4.23). Income inequality is increasingly deepening.

They evaluated that the government’s swift response through the 4th supplementary budget and other measures mitigated the worsening of distribution caused by domestic demand and employment shocks due to the resurgence of COVID-19 since mid-August. However, they noted that the decrease in market income for vulnerable groups such as temporary and daily workers and small business owners is significant, limiting improvements in income and distribution conditions through government support.

Accordingly, the government plans to strengthen active policy responses by expanding employment and social safety nets and supporting the recovery of market income. In addition, the economic policy direction for next year will faithfully reflect policy efforts to strengthen employment and social safety nets and improve market income.

This content was produced with the assistance of AI translation services.