On a nominal basis, the monthly average income per household with one or more family members rose 3.9 percent over the year to 5,024,000 won (3,770 U.S. dollars) in the October-December quarter 2023, according to Statistics Korea.
It continued to expand for the second straight quarter after sliding 0.8 percent in the second quarter of 2023.
The real household income, adjusted for inflation, added 0.5 percent in the fourth quarter after climbing 0.2 percent in the previous quarter.
The nominal earned income gained 1.5 percent over the year to 3,167,000 won (2,370 dollars) in the fourth quarter, slower than an expansion of 3.5 percent in the previous quarter.
The business income went up 1.6 percent in the fourth quarter after declining 0.8 percent in the prior quarter, while the property income surged 80.3 percent on the back of tax cuts for the rich.
The nominal transfer income advanced 17.7 percent to 671,000 won (500 dollars) in the cited quarter due to higher grants from the government.
The monthly average expenditure per household increased 5.2 percent over the year to 3,813,000 won (2,860 dollars) in the fourth quarter.
Consumption expenditure expanded 5.1 percent to 2,833,000 won (2,120 dollars) in the quarter, while the inflation-adjusted real consumption expenditure was up 1.6 percent.
On a nominal basis, expenses on housing, water, light and heat, healthcare, leisure and culture, and the eatery and lodging categories gained ground, but expenditure on alcohol and cigarettes and the communication service reduced in single digits.
Non-consumption expenditure, which includes the payment of tax, social insurance premium and interest cost, went up 5.6 percent to 980,000 won (740 dollars) in the cited quarter.
The interest payment surged 20.0 percent on higher policy rates, while the social insurance fee payment gained 6.5 percent.
The country's central bank had left its key rate unchanged at 3.50 percent since January 2023, after raising it by 3.0 percentage points for the past one and a half years.
The monthly average disposable income, or nominal income minus non-consumption expenditure, per household, climbed 3.5 percent from a year earlier to 4,044,000 won (3,030 dollars) in the fourth quarter.
The average consumption propensity among households, which measures the ratio of consumption expenditure to disposable income, added 1.0 percentage point to 70.1 percent in the cited quarter.
Income disparity among households remained wide in the October-December quarter.
The monthly average income of households in the bottom 20-percent income bracket mounted 4.5 percent from a year earlier to 1,178,000 won (880 dollars) in the fourth quarter.
Income for households in the top 20-percent income group swelled 3.6 percent to 10,804,000 won (8,100 dollars).
The monthly average expenditure of households in the bottom bracket shrank 0.5 percent to 1,470,000 won (1,100 dollars), while expenditure by the top group grew 8.0 percent to 7,217,000 won (5,410 dollars).
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