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One out of Five Urban Households in Deficit

Posted February. 23, 2004 22:24,   

한국어

Last year’s real income for urban workers showed to have been actually at a standstill.

Of the entire 5,000 urban working households with over two people, it turned out that 1,000 families spent 146,100 won more than their income, showing a “deficit structure.”

According to the trend of household payments of the urban workers for 2003 announced by the National Statistical Office (NSO) yesterday, the monthly average real income, excluding the increased consumer price, was 2.655 million won, rising by 1.6 percent from last year. This increased rate was the lowest after 1999 (3.5 percent).

Also, when excluding the spouse and other family members’ earned income, which had increased over last year, the monthly average real income for an urban household increased by merely 10,000 won compared to last year.

The earned income of a householder in the lowest 20 percent income bracket decreased by 1.3 percent from last year, but on the other hand, the spouse’s income increased by 53 percent, showing a somewhat interesting occurrence. It is analyzed that as living became harder in the low income class, the spouses contributed to the family income by joining the work force.

The lowest 20 percent income class earned a monthly average of 1.093 million won last year and spent 1.2391 million won, having a loss of 146,100 won each month.

The monthly average nominal income which does not consider the price increase was 2.939 million won for an urban worker last year, merely increasing by 5.3 percent from last year’s 2.792 million won. This increase was the lowest since 2000 (7.3 percent).

The monthly average money was 2.28 million won, taking a 6.8 percent rise from last year (2.136 million won). The real consumer spending reflecting the increased consumer price was 1.7493 million won, increasing 2.4 percent from last year.

From the results by items, educational expenses were a monthly average of 225,000 won, which increased 11.1 percent from last year.

Additional educational expenses for academies and private tutoring increased 40.8 percent.

NSO Population & Social Statistics Bureau Chairman Kwon Oh-sul said, “The private education expenses increased because college students and graduates are expanding education expenses for their employment, and it seems to be related to the unemployment in young adults.”

Also, the expense in haircuts and beauty (-1.6%), fuel (-6%), furniture (-24.6%) and home appliances (-12.1%) were reduced, showing a typical “depressed” spending structure. Meanwhile, as the number of two-paycheck families increased, expenses for dining out rose by 15.1 percent.

Gini’s coefficient which shows the level of income disparity was 0.306, showing to have somewhat improved from last year’s 0.312, but the income of the highest 20 percent class was 5.22 times higher than the lowest 20 percent, increasing from last year’s 5.18.



Jong sik Kong kong@donga.com