National Income Per Person Remains Stagnant
In the past year, the gross national income (GNI) per person reached $36,963 (52.57 million South Korean Won), according to recent economic data. This figure marks the twelfth consecutive year that the nation’s per capita income has failed to surpass the $40,000 threshold, a milestone first achieved in 2014.
Economic Performance Analysis
While GNI, on a Won basis, saw a 4.6% increase compared to the previous year, its growth in US dollar terms was limited to a mere 0.3%. This disparity is attributed to fluctuations in the currency’s value.
Taking inflation into account, the real GNI demonstrated a more modest increase of 2.1% over the year. Disposable income, which represents the portion of income available for discretionary spending after essential consumption and savings, was recorded at 29.177 million Won, a 4.1% rise from the prior year. However, on a dollar basis, this figure decreased by 0.2% to $20,251.
Income Distribution and Trends
Nominal disposable income for the nation amounted to 2,705.7 trillion Won, reflecting a 4.4% increase. Household income grew by 4%, reaching 1,508 trillion Won. Corporate income saw a more substantial rise of 6.1%, totaling 650.9 trillion Won, while government income increased by 3.8% to 546.8 trillion Won.
For two consecutive years, starting in 2023, South Korea’s per capita GNI has outpaced that of Japan and Thailand. Among nations with populations exceeding 50 million, it ranked sixth, following the United States, Germany, the United Kingdom, France, and Italy. However, based on last year’s figures, it is projected to have slipped to seventh place, again trailing Japan.
Spending and Savings Patterns
Out of the total disposable income, 64.9% (1,755.6 trillion Won) was allocated to consumption. The remaining 35.1% (950.1 trillion Won) was directed towards savings.
