S. Koreans’ spending drops to record low in Q2

[THE INVESTOR] The ratio of South Korean households’ disposable income to consumption fell to a record low during the second quarter of the year, Statistics Korea said Aug. 19.

According to Statistics Korea, South Korean households’ disposable income showed a 1 percent increase year-on-year in the second quarter of the year.

However, consumer spending stayed unchanged over the same period, pushing down the proportion of disposable income to consumption to 70.9 percent. This is the lowest quarterly figure seen since the government began compiling related data in 2003.

The government attributed the drop to the general population aging, as well as falling oil prices.

Statistics Korea said older households spend less, while households headed by individuals in their 30s and 40s tend to spend more proportionately. 

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