Real income records zero growth in Q2

[THE INVESTOR] South Korean households’ real income remained the same from a year ago during the second quarter of the year, government data showed Aug. 19.

According to Statistics Korea, although the second quarter saw household income grow by 0.8 percent from a year ago, real income remained the same.

The data showed the second quarter’s sluggish growth was brought on mainly by the drop in capital income, which dropped 9.8 percent compared to the same period last year.

Since dropping to below 1 percent in the third quarter of last year, South Korea’s household income growth rate has failed to recover. Between the first quarter of 2014 and the second quarter of last year, household income growth rate had ranged between 2 percent and 5 percent.

However, the figure dropped to 0.7 percent in the third quarter of 2015, and has remained below 1 percent since.

The real income growth rate has shown slower growth. In the third quarter of last year, real income showed no year-on-year growth. In the following two quarters, real income shrank by 0.2 percent on year.

By Choi He-suk (cheesuk@heraldcorp.com)