In further proof of the lengthy economic slump being most hard on the poor, monthly disposable incomes of the bottom income bracket in South Korea shrank by the biggest scope in the third quarter, government data showed.

According to Statistics Korea on Monday, disposable income of the income bracket that make up bottom 10 percent or below averaged at 717,000 won ($611.04) per month in July-September period, down 16.0 percent from a year-ago period - the biggest-ever decline since such data was compiled from 2003. Disposable income refers to the amount of money that households have available for spending and saving after non-living expenses such as income tax, pension and insurance payments.

The average disposable income of the poorest 10 percent Koreans steadily rose by 10 percent annually from the fourth quarter of 2013 until last year. The growth reversed to a contraction of 4.8 percent in the first quarter this year, and the fall has been widening ever since.

Poorer earnings and fewer temporary jobs are the biggest reason. Monthly income from labor for bottom group shriveled 16 percent in the first and second quarter on year. It dipped further to 25.8 percent in the third quarter. Income from business also shrank 16.8 percent.

The less one earned, the harder the economic downturn had been. The disposable income was reduced by 1.0 percent for the 20 percent to 30 percent of the lower bracket and 2.5 percent for the 10 percent to the 20 percent. Incomes all increased for the rest in the upper bracket. Available income for top 10 percent bracket rose 3.2 percent.

The bottom income group was most hurt because part-time and temporary jobs were first to go in economic hardship. Part-time and temporary jobs fell 7.8 percent on year in the first quarter rand another 6.5 percent in the second quarter.

By Kim Gyu-sik

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]