Buying a House with 'Yeongkkeul'... Household Disposable Income Plummets in Q2

As housing prices rise and more people purchase real estate, the increase in disposable funds for households in the second quarter of this year sharply decreased compared to the previous quarter.

According to the Bank of Korea's provisional funds circulation data for the second quarter released on the 7th, the net fund operation scale of households and non-profit organizations in the second quarter was 41.2 trillion won, down 36.4 trillion won from 77.6 trillion won recorded in the previous quarter.

Net fund operation is the value obtained by subtracting financial liabilities transactions (fund procurement) from financial assets transactions (fund operation), and can be interpreted as the disposable funds of economic agents.

In the second quarter, fund operation by households and non-profit organizations was 55.7 trillion won, a decrease of 23.3 trillion won from 79 trillion won in the previous quarter. On the other hand, during the same period, fund procurement increased by about 13.2 trillion won from 1.4 trillion won to 14.6 trillion won.

Kim Seong-jun, head of the funds circulation team at the Bank of Korea's Economic Statistics Bureau, explained, "With an increase in borrowings from financial institutions such as mortgage loans in the second quarter, household fund procurement increased while deposits decreased, leading to a decline in fund operation." He added, "The expansion of apartment pre-sale volumes and an increase in net housing acquisitions reduced households' disposable funds."

The net fund procurement scale of non-financial corporations in the second quarter expanded to 23.7 trillion won from 1.6 trillion won in the previous quarter. Although direct investment increased, the scale of fund operation shrank due to decreases in financial institution deposits and bonds, while fund procurement increased due to higher borrowings from financial institutions.

The net fund procurement scale of the general government in the second quarter was 1.1 trillion won, significantly reduced from 50.5 trillion won in the previous quarter. This was due to a reduction in government bond issuance and repayment of borrowings, causing fund procurement to decrease from 78.8 trillion won in the first quarter to 22.4 trillion won in the second quarter.

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