S. Korea`s Q3 household income falls amid economic slowdown

SEOUL, Nov. 13 (Yonhap) -- The average household income in South Korea dropped
for the second consecutive quarter in the third quarter amid a protracted
economic slowdown, a government report showed Friday.
According to the report by the Statistics Korea, the average income of households
with two family members or more amounted to 3.45 million won (US$2,970) during
the July-September period, down 1.4 percent from the same quarter a year earlier.
In the second quarter, the income fell 0.1 percent from a year ago.
Household income adjusted for inflation also contracted 3.3 percent to 3.05
million won, marking a fall for the fourth straight quarter, the report showed.
Disposable income dropped 0.9 percent over the same period to 2.83 million won.
Spending, however, picked up, raising hopes that consumers might steadily open
wallets tightly closed in the wake of the financial crisis and a resulting global
recession last year.
The average household expenditure amounted to 2.82 million won in the third
quarter, up 1.4 percent from a year ago, mainly thanks to increased purchases of
vehicles and medical goods. This marked the second straight quarter of spending
growth, the report showed.
When adjusted for inflation, however, the amount inched down 0.1 percent from a
year ago.
Expenditure on transportation including vehicles jumped 11.1 percent, driven by
the government's tax incentives aimed at bolstering car purchases, according to
the report.
Households spending on health care also surged 12.4 percent mainly due to
increased purchases of medicines and related equipment in the wake of the
outbreak of new flu, the report showed. But expenditure on foods and
non-alcoholic beverage goods dropped 4.9 percent.
kokobj@yna.co.kr
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