"Per Capita Gross Income" Expected to Hit $40,000… Why Does My Wallet Feel Empty?

[Anchor]

South Korea's economy grew at its fastest pace in 47 years during the second quarter. Per capita gross national income is also projected to surpass 40,000 dollars for the first time ever. However, many citizens feel like this news is far removed from their reality.

Reporter Kim Beom-joo takes a closer look at why.

[Reporter]

South Korea's economic report card for the second quarter is stellar.

Nominal GDP surged by a massive 26.4 percent 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), which measures what corporations and individuals earned globally, also increased by 15.6 percent, hitting a 38-year high since 1988, the year of the Seoul Olympics.

This growth was driven by robust exports, centered around semiconductors.

The Bank of Korea analyzed that if current trends continue, South Korea's per capita national income will reach 40,000 dollars this year for the first time in history.

That is good news.

However, at 40,000 dollars—which translates to about 53 million won—many people will likely wonder why the average is so high when they do not earn nearly that much.

This confusion stems from the term "national income." In fact, it is calculated by combining the money earned by individual citizens, the earnings of corporations, and the taxes collected by the government.

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

Back in 1975, when this statistic was first compiled, 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 rise.

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

However, it is time to give more thought to how to evenly spread warmth throughout the entire domestic economy.

Furthermore, given that overall income has indeed increased, there is a high possibility that it could stimulate inflation and, furthermore, housing prices, leaving policymakers with yet another challenge to address.

[Video Editing: Yeojin | Design: Lee So-jung]
※ Please note: This article was translated by AI and may contain errors.