Household income distribution in 2024 has shown a slight deterioration. While high-income households experienced a growth rate that exceeded the overall average, middle-income households lagged behind.
According to the "Household Distribution Accounts" statistics released by the Bank of Korea on June 9, the total primary income (GNI) of households in the top 20% income bracket increased by 7.9% compared to the previous year, significantly surpassing the overall growth rate of 4.8%.
In contrast, the total primary income for households in the bottom 20% rose by 5.9%, which was above the overall growth rate but 2.0 percentage points lower than that of the top income bracket. The growth rates for the second (0.3%), third (2.7%), and fourth (2.4%) income brackets were also below the overall average.
Income disparity has also widened slightly. The total primary income for households in the top income bracket reached 73.5254 trillion won, which is 7.84 times that of the bottom income bracket at 9.3839 trillion won. This marks an increase from the previous year's ratio of 7.69 times. Total primary income refers to the income households earn in exchange for labor or the use of assets.
A similar trend was observed in employee compensation, a key component of household income. Last year, employee compensation for households in the top income bracket increased by 7.1%, well above the overall growth rate of 4.7%.
Households in the bottom and fourth income brackets saw increases of 4.8% and 4.5%, respectively, aligning closely with the overall average. However, the second (0.1%) and third (2.0%) income brackets experienced relatively smaller growth.
Nevertheless, the disparity in total disposable income (GNDI), which can be used for consumption and savings, was not as pronounced across income brackets. This is attributed to the effects of government redistribution policies and transfer income. Transfer income includes funds received by households that are not related to production activities, such as public and private assistance.
The total disposable income for households in the top income bracket increased by 6.9% last year, exceeding the overall growth rate of 5.3%. However, the growth rate for households in the bottom income bracket was also recorded at 6.6%, indicating that the gap between these two groups was not substantial.
In terms of total disposable income, households in the top income bracket earned 57.1008 trillion won, which is 5.30 times that of the bottom income bracket at 10.7659 trillion won. This represents a significant reduction from the total primary income gap of 7.84 times, suggesting the impact of government transfer expenditures and redistribution effects.
* This article has been translated by AI.
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