20 Percent of High Income Level, 1,780,000 Won Per Month

Income gap between high income and low income class increased after economic crisis and is expanding steadily.

Also, 20 percent of high income family goes into 40 percent black, on the other hand 20 percent of low income family spends 10 percent more than their income, thereby having a deficit.

According to `family income and expenditure of city workers in 2001`, which National Statistical Office presented on 21st, Gini coefficient and gap between 20 percent high income level and 20 percent low income level increased as compared to the previous year.

Gini coefficient increased to 0.319 as compared to 0.317 last year in 2000.

Also, `income rate of 5 divisions` as compared to high level 20 percent and low level 20 percent rose to 5.36 times than previous year which was 5.32 times.

Gini coefficient recorded 0.283 in 1997, which was before economic crisis; however, it rose to 0.320 in 1999, while going through economic crisis.

And it settled down to 0.317 and 5.32 in 2000; however it expanded again last year to the level of 1999.

Monthly average income of city family worker last year was 2,625,100 won, which is an increase of 238,200 won (10 percent) than 2,386,900 won in 2000.

The lowest 20 percent family`s expenditure was 9.3 percent more than the `disposable income` after deduction of tax and interest burden, therefore, it had a deficit of 82,800 won per month.

However, the highest 1/5th family went into black that was 1,784,400 won per month, which is 38.8 percent of disposable income.

Monthly average expenditure of city worker family was 2,058,000 won, which is an increase of 9.0 percent than previous year`s 1,888,000 won, and it showed the lowest increasing rate for recent 3 years.

However, `non-expenditure` like tax burden (14.9 percent) of income tax and car tax, public annuity (16.6 percent) and social insurance ( 16.9 percent), etc showed the biggest increase in rate of 11.9 percent from recent 5 years, therefore people`s burden became high.

The number 0~1 shows the level of income imbalance.

The more it is near to 1, it means high imbalance ratio.

Joong-Hyun Park sanjuck@donga.com