South Korea's Ministry of Economy and Finance reported that average monthly household income rose 4.5% year over year to KRW 5.295 million in the second quarter of 2026, marking a 12th consecutive quarterly increase. Real income grew 1.5% after inflation. Earned income increased 0.8%, business income 3.8% and transfer income 20.4%, with the latter supported by payments to households affected by high oil prices. Income increased across all five quintiles, ranging from 7.5% for the lowest-income group to 3.8% for the highest. Household consumption expenditure rose 3.4%, or 0.4% in real terms, while disposable income increased 5.2% and the household surplus rose 9.6%. The equivalized disposable income quintile ratio fell to 4.97 from 5.45 a year earlier, although the ministry cautioned that quarterly data are seasonal and volatile and that the annual Survey of Household Finances and Living Conditions is the official measure for assessing distributional improvement. The government plans to implement its economic growth strategy for the second half of 2026, prepare measures in September to stabilize prices and ease household costs around the Chuseok holiday, and develop a youth employment recovery plan.
2026-08-27Ministry of Economy & Finance (South Korea)
South Korea's Ministry of Economy and Finance reports 4.5% household income growth in the second quarter
South Korea's Ministry of Economy and Finance reported that household income rose 4.5% year over year in the second quarter of 2026, or 1.5% after inflation, with gains across all income quintiles. Consumption expenditure increased 3.4%, while disposable income rose 5.2% and the equivalized disposable income quintile ratio declined to 4.97.