An in-house research entity of NH Investment and Securities published a study on January 28 that found the percentage of income used to cover living expenses was more than 30 percentage points higher for low-income households than the middle class. (Image: Yonhap)
SEOUL, Feb. 28 (Korea Bizwire) – An in-house research entity of NH Investment and Securities published a study on January 28 that found the percentage of income used to cover living expenses was more than 30 percentage points higher for low-income households than the middle class.
The study was based on data derived from a survey conducted last November. Among a total of 1,557 individuals, the participants were divided into high earners (224), middle class (1,122) and low-income earners (211).
The low-income earners were found to commit 820,000 won, 80.4 percent of their average monthly income of 1.02 million won, to living expenses.
The middle class had an average monthly income of 3.65 million won, of which 49.9 percent (1.82 million won) was devoted to costs of living, while the high earners allocated 40.7 percent of their average monthly income of 6.64 million won (2.7 million won) to the same purpose.
The low-income earners were found to commit 820,000 won, 80.4 percent of their average monthly income of 1.02 million won, to living expenses. (Image: Korea Bizwire)
Researcher Kim Jin-woong pointed out that the percentage differences in expenditures on living costs between the middle class and high earners had shrunk by a large margin, and attributed the change to the law of diminishing marginal utility.
The percentage of average monthly income destined for savings, meanwhile, decreased going down the socioeconomic ladder. High earners dedicated 28.5 percent to savings and the middle class saved 20 percent. The low-income earners committed 12.9 percent.
Kevin Lee (kevinlee@koreabizwire.com)
