[Anchor]

South Korea's economy grew at its fastest pace in 47 years during the second quarter. Gross national income per capita is also projected to surpass $40,000 for the first time on record. However, the problem is that the public's actual quality of life has not improved in tandem with economic growth.

Reporter Kim Beom-joo examines why this disparity exists.

[Reporter]

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

Nominal GDP increased by 26.4% compared to the previous year, marking the highest growth rate in 47 years since 1979 during former President Park Chung-hee's administration.

Gross National Income (GNI)—which encompasses the earnings of corporations and individuals worldwide—also rose by 15.6%, hitting a 38-year high since 1988, the year of the Seoul Olympics. This was driven by robust exports centered around semiconductors.

The Bank of Korea analyzed that if current trends persist, per capita national income will likely reach $40,000 this year for the first time ever.

That is good news.

However, with $40,000 amounting to about 53 million won, many people probably wonder, "I don't make anywhere near that much, so why is the average so high?"

The term "national income" can cause misunderstandings because it actually aggregates the money earned by individuals, corporations, and the revenue collected by the government through taxes.

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

Back in 1975, when these statistics were first compiled, for every 100 won the country earned, citizens took home 77.5 won—nearly three-quarters. Over time, the share claimed by corporations and the government has increased, meaning the direct share going to the public has correspondingly shrunk.

The Bank of Korea stated that if large corporations distribute wealth through dividends and performance bonuses, consumer spending will increase.

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

Nevertheless, it is time to give more thought to how evenly warmth can be spread across the entire domestic economy.

Furthermore, given that overall income has indeed increased, it is highly likely to stimulate inflation and, by extension, housing prices, leaving policymakers with yet another challenge.

(Video Editing: Yeojin, Design: Lee So-jung)