This photo, taken on Oct. 16, 2020, shows citizens going grocery shopping at a discount store in Seoul. (Yonhap)
SEOUL, Dec. 3 (Korea Bizwire) — A recent study showed that South Korea’s bottom 20 percent households by income (the lowest income quintile) have been in the red for nine straight years. In other words, their spending was greater than their income during that period.
According to a report released on Thursday by the Korean Confederation of Trade Unions, a major umbrella labor group, the current income of the lowest income bracket, which refers to regular and foreseeable income, averaged 11.55 million won (US$9,810) last year, 420,000 won lower than their average spending of 11.97 million won.
In 2012, their income amounted to 7.61 million won, with their spending estimated at 8.22 million won, resulting in a deficit of 610,000 won.
Thereafter, despite fluctuations in the amount of deficits, those in the lowest income bracket have failed to escape from deficits.
When it came to spending on educational, those in the highest income bracket (top 20 percent of households by income) spent 7.91 million won, much higher than the 220,000 won spent by households in the lowest income bracket.
In contrast, low income households spent more on housing expenses including rent, maintenance and repair costs, and utilities, compared to high income households.
The per-capita housing expenses amounted to 1.49 million won for households in the lowest income quintile, followed by the second quintile at 1.4 million won, the third quintile at 1.19 million won, the fifth quintile at 1.17 million won and the fourth quintile at 1.07 million won.
Lina Jang (linajang@koreabizwire.com)
