S. Korea's Q1 real income falls amid economic downturn

SEOUL, May 29 (Yonhap) -- South Korean households' real income dropped in the
first quarter of this year amid a protracted economic slump, a government report
showed Friday.

According to the report by the National Statistical Office, the average real
income adjusted for inflation amounted to 3.47 million won (US$2,760) during the
January-March quarter, down 3 percent from the same period a year earlier.
Household spending adjusted for inflation also contracted 6.8 percent to 2.14
million won.
Spending on alcohol and tobacco plunged 13.5 percent, the report showed.
Expenditure on education and health care, however, rose 5 percent and 3.9
percent, respectively, over the same period.
The decline in household income and spending comes as the nation's economy is
expected to slip into a recession this year for the first time in more than a
decade, hit by diminished overseas demand due to global recessions.
South Korea's government has been pushing for diverse stimulus measures including
tax cuts and expanded fiscal spending aimed at creating jobs and bolstering
sagging domestic demand.
kokobj@yna.co.kr
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