S. Korea's household income grows faster on economic recovery

Household income in South Korea grew at a faster pace in the second quarter of this year due to economic recovery during the quarter, a government report showed Friday.

Monthly average income of households with more than two family members expanded 2.5 percent from a year earlier to 4,041,000 won (3,607 U.S. dollars) in the second quarter, according to the Ministry of Strategy and Finance. The figure was higher than the 1. 7 percent rise in the prior quarter.

Real household income, or the reading adjusted for inflation, increased 1.3 percent on year in the second quarter, compared to a 0.3 percent gain in the previous quarter.

The faster growth was attributable to the economic recovery. South Korean economy advanced 1.1 percent in the second quarter from three months earlier, rising above the 1 percent level for the first time in nine quarters.

Monthly household spending averaged 3,157,000 won during the April-June period, up 1.5 percent from a year earlier. The figure was a turnaround from a 1 percent reduction in the prior quarter.

Consumption expenditure gained 0.7 percent in the second quarter after falling 1 percent in the previous quarter due to solid demand for consumer electronics such as air conditioners and dehumidifiers during the summer rainy season. Non-consumption expenditure, including taxes and interest payments, increased 4.1 percent in the same period.

Disposable income, or total income minus non-consumption expenditure, rose 2.1 percent in the second quarter from a year earlier due to faster rise in income than expenditure.