Seoul: South Korea’s average household income rose for the ninth consecutive quarter in the third quarter of this year, partly driven by a sharp increase in transfer income, government data showed Thursday. The average monthly income of households came to 5.44 million won (US$3,699) in the July-September period, up 3.5 percent from the same period last year, according to data from the Ministry of Data and Statistics.
According to Yonhap News Agency, this marks an acceleration from the 2.1 percent on-year increase recorded in the previous quarter, following the 4.5 percent rise in the first quarter and the 3.8 percent growth in the fourth quarter of last year. Income earned through wages went up 1.1 percent on-year to an average of 3.37 million won per month over the cited period.
The monthly average income from business operations inched up 0.2 percent to 989,000 won, and transfer income backed by state support jumped 17.7 percent on-year to 923,000 won. The agency said that income earned through wages, along with a rise in transfer income, has contributed to the rise in overall household income.
Notable growth in transfer income was mainly attributed to the government’s “consumption coupon” program, which provided cash handouts to all households in July and again to a majority of the population in September, the ministry said. The real household income, adjusted for inflation, climbed 4.6 percent in the cited quarter on a yearly basis, up from the 1.9 percent on-year growth in the previous quarter.
Monthly household spending edged up 0.7 percent on-year to 4 million won in the third quarter as people spent more on housing, food, and health care, the ministry said.