South Korea Posts 2.1 Percent Increase in Household Income

(MENAFN) South Korean households saw average income rise for the eighth consecutive quarter, supported by gains in wages and business earnings, according to data released Thursday by Statistics Korea.

In the second quarter of 2025, the average monthly income per household with at least one family member stood at 5,065,000 won (approx. 3,640 USD), marking a 2.1% year-on-year increase in nominal terms. This continued the upward trend that began in Q3 2023.

However, when adjusted for inflation, real income showed no growth compared to a year earlier.

Earned income rose 1.5% to 3,194,000 won, decelerating from a 3.7% gain in the previous quarter. Business income edged up just 0.2% to 941,000 won, down from a 3.0% increase in Q1.

Other income categories saw stronger growth. Property income surged 7.6%, while transfer income increased 5.1% during the quarter.

On the spending side, average household expenditure climbed 1.7% year-over-year to 3,876,000 won. Within that, consumption spending rose 0.8% to 2,836,000 won, slowing from 1.4% in the first quarter.

In real terms, however, consumption spending declined 1.2%, continuing its contraction for the second quarter in a row.

Spending patterns shifted notably: households increased nominal outlays on essentials such as food, housing, utilities, healthcare, lodging, and dining out. Conversely, expenditures on discretionary items like alcohol, tobacco, apparel, transport, communication, leisure, and education all fell by single-digit percentages.

Non-consumption expenditures—which include taxes, social insurance, and interest payments—rose 4.3% to 1,040,000 won. Among these, non-recurring tax payments jumped 25.9%, while insurance and interest expenses also saw moderate increases.

After subtracting non-consumption spending, the average disposable income rose 1.5% to 4,024,000 won.

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