South Korea’s household income on Thursday rose in the second quarter on the government’s income-driven growth policy to narrow an income gap, statistical office data showed.
According to Statistics Korea, the nominal income of households with at least two family members gained 3.8 per cent in the April-June quarter from a year earlier.
However, income for bottom 20 per cent of low-income bracket inched up in the quarter, turning around in six quarters mainly due to government’s income-driven growth policy that includes a fast hike in the minimum wage and basic pension.
Earned income for the bottom 20 per cent tumbled 15.3 per cent, but it was offset by the re-distribution policies.
Earning for the middle-income bracket between 40 and 60 per cent grew at the fastest pace of 6.4 per cent among the five income brackets.
Income for the top 20 per cent bracket rose 3.2 per cent over the year to average 9,426,000 won (or around 7,800 U.S. dollars) in the second quarter, increasing slower than the combined income growth.
Meanwhile, nominal disposable income for households was up 2.7 per cent in the June quarter, marking the fastest gain since the second quarter of 2015.