Household income rises 4.5 pct in Q2 on higher wage, transfer income

South Korea's average household income surged 4.5% year-over-year in the second quarter of 2026, driven by higher wages and transfer income, according to data released by the Ministry of Data and Statistics. The average monthly household income stood at 5.29 million won (US$3,810) for the April-June period. A separate report from the finance ministry indicated that inflation-adjusted household income grew by 1.5% in the same period.

The average monthly wage income increased by 0.8% from a year earlier to 3.21 million won, though growth was constrained by fewer wage workers and decelerating wage growth. Average monthly business income reached 977,000 won, up 3.8% from a year earlier, propelled by stronger retail sales. Transfer income jumped significantly by 20.4% to 931,000 won, primarily due to government subsidies aimed at mitigating the impact of high fuel prices.

Property income surged 21.3% to an average of 67,000 won monthly, while monthly household spending grew by 3% to 3.99 million won, extending 22 consecutive quarters of growth. However, when adjusted for inflation, the growth slowed to 0.4%, led by higher spending in household goods, services, and restaurant and hotel categories. By contrast, spending on transportation, alcoholic beverages, and tobacco declined.

Non-consumption spending, encompassing taxes and insurance premiums, rose by 1.9% to 1.06 million won, primarily due to higher interest costs and social insurance payments. Average monthly income for households in the bottom 20% income bracket increased by 7.5% year-over-year to 1.28 million won. Households in the top 20% earned an average of 11.1 million won per month, representing a 3.8% year-on-year increase.

Income growth was observed across all income brackets. The ratio of the average equivalized disposable income for top 20% households to that of bottom 20% households, a key indicator of income inequality, stood at 4.97 in the second quarter, a decline of 0.48 from the previous year.