Q4 Monthly Average Household Income 4.642 Million Won... Income Inequality Improvement

Statistics Korea Announces '2021 Q4 Household Trends Survey Results'

[Asia Economy Sejong=Reporter Kwon Haeyoung] The average monthly income per household in the fourth quarter of last year was 4,642,000 KRW, showing a 6.4% increase compared to the same period the previous year. The quintile ratio, which indicates the degree of income inequality, showed slight improvement.

According to the '2021 4th Quarter Household Trends Survey Results (households with one or more members, including agricultural, forestry, and fishery households)' announced by Statistics Korea on the 24th, the average monthly income per household in the fourth quarter of last year was 4,642,000 KRW, a 6.4% increase from the same period the previous year.

Looking at income levels (income quintiles), the lower-income groups experienced larger income growth. The average monthly income of the 1st quintile was 1,058,000 KRW, up 8.3% from the previous year. The 2nd quintile was 2,531,000 KRW, up 6%, the 3rd quintile was 3,879,000 KRW, up 6.9%, the 4th quintile was 5,612,000 KRW, up 5.3%, and the 5th quintile was 10,130,000 KRW, up 6.9%.

By income category, earned income accounted for 62.3%, business income 21.9%, and property income, transfer income, and non-regular income accounted for 13.0%, 2.2%, and 0.6% respectively. Earned income was 2,738,000 KRW, up 5.6%, business income was 937,000 KRW, up 8.6%, and transfer income, which includes disaster relief funds, was 580,000 KRW, up 3.9%.

Expenditure averaged 3,406,000 KRW per household per month, increasing 5.5% compared to the same period last year. By expenditure category, clothing and footwear (12.2%), entertainment and culture (11.0%), education (20.6%), and food and accommodation (17.0%) increased, while transportation (-3.2%) decreased.

The average monthly disposable income per household was 3,783,000 KRW, up 6.8% from the previous year. The surplus amount, calculated by subtracting consumption expenditure from disposable income, was 1,236,000 KRW, increasing 9% during the same period. Looking at disposable income by income quintile, the 1st quintile was 890,000 KRW, up 8.8% from the previous year, and the 5th quintile was 8,108,000 KRW, up 7.1%.

The quintile ratio, which shows the degree of income inequality (based on equivalized disposable income), improved. The quintile ratio indicates how many times the income of the 5th quintile is compared to the 1st quintile; a higher number means greater polarization. The ratio for the fourth quarter of this year was 5.71 times, an improvement compared to 5.78 times in the same period last year.

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