First-Quarter Real Incomes Fall for All Except Top 20% of Households, First Time Since 2020

[Economy 365]

Real incomes for all urban households in South Korea, except for the top 20% by income, declined in the first quarter of this year.

This marks the first time in 11 quarters, since the second quarter of 2023, that real incomes for the bottom 80% (from the first to fourth quintiles) fell simultaneously. Uniquely, only the top 20% saw an increase in real income.

It is the first time since relevant statistics began being compiled in 2020 that incomes dropped across the first through fourth quintiles while rising exclusively in the fifth quintile.

The fourth quintile recorded the largest drop at 2.3%, followed by decreases in the second, third, and first quintiles as well.

The disparities between income brackets were particularly evident in earned income and business income.

While the upper-income bracket did not see significant growth in earned or business income, public transfer income such as pensions and allowances, alongside private transfer income such as allowances and family support, both increased. This drove up transfer income by 24.6%, ultimately boosting their overall income.

In contrast, transfer income for the bottom 20%—which accounts for more than half of their total income—actually fell by 1.1%.

* This article was produced with AI audio.

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