Household income grows at fastest pace in Q1

Household income grew at the fastest pace on record in the first quarter on the back of the economic recovery and state relief funds for pandemic-hit merchants, data showed Thursday.

The average household earned 4.83 million won (US$3,800) per month in the January-March period, up 10.1 percent from a year earlier, according to the data from Statistics Korea.

It marked the fastest on-year gain since 2006, when the statistics agency began compiling related data. Household income also grew for the third straight quarter.

Last quarter, household income earned through wages and business operations gained ground as the economy has extended its recovery momentum, the agency said. Relaxed virus curbs also helped prop up the output of the in-person service segment.

Wage income rose 10.2 percent on-year to an average of 3.06 million won per month. The monthly average income from business operations spiked 12.4 percent to 862,000 won.

Transfer income backed by state support grew 9.5 percent to 544,000 won, mainly because the government drew up this year’s first extra budget of 16.9 trillion won to support merchants hit hard by the COVID-19 pandemic.

Household spending increased in the first quarter, led by gains in expenditures on food, accommodations, and education and health care services.

The average household spent 3.5 million won per month, up 6.2 percent from the previous year.

Of the amount, monthly consumption expenditures gained 4.7 percent on-year to an average of 2.53 million won.