Per Capita Income of $40,000?..."I Don't Make That Much," Why?

[Anchor]

South Korea's economy grew at its fastest pace in 47 years during the second quarter. Per capita gross national income (GNI) is also projected to surpass $40,000 for the first time ever. The problem is that despite this economic growth, the actual lives of the general public have not improved.

Reporter Kim Beom-joo examines why this discrepancy exists.

[Reporter]

South Korea's economic scorecard for the second quarter is impressive.

Nominal GDP surged by a staggering 26.4% compared to the previous year, marking the highest growth rate in 47 years since 1979 under former President Park Chung-hee.

Gross National Income (GNI)—representing the earnings of corporations and individuals worldwide—also increased by 15.6%, recording its highest jump in 38 years since 1988, the year of the Olympics.

This growth was driven by strong exports centered on semiconductors.

The Bank of Korea analyzed that if current trends continue, per capita national income will hit $40,000 this year for the first time in history.

This is good news.

However, with $40,000 translating to about 53 million won, many people will likely wonder, "I don't make nearly that much, so why is the average so high?"

The term "national income" can be misleading because it is actually calculated by combining the money earned by individual citizens, corporate earnings, and government tax revenues.

So how much of that money actually ends up in the pockets of individual citizens? A little over half, at 55.5%.

When these statistics were first compiled in 1975, for every 100 won the nation earned, citizens took home 77.5 won—nearly three-quarters. Over time, however, the share claimed by corporations and the government has increased, meaning the direct share going to the public has decreased accordingly.

The Bank of Korea stated that if large corporations distribute wealth through dividends and performance bonuses, consumption is expected to increase.

[Kim Hwa-yong / Head of National Accounts Dept., Bank of Korea: Government revenue, such as corporate tax, earned income tax, and dividend income tax, will also increase, which is expected to lead to a boost in domestic demand with a time lag.]

However, more thought must be given to how to evenly spread warmth throughout the entire domestic economy.

Additionally, given that overall income has indeed increased, there is a high possibility it will stimulate inflation and, further down the line, housing prices—leaving policymakers with yet another challenge.

(Video Editing: Ahn Ye-jin, Design: Lee So-jung)
※ Please note: This article was translated by AI and may contain errors.