In further indication of how tough the economy has been for Koreans, income remains stagnant as well as spending, widening the gap between the higher and lower cadre, a government data showed.

According to Statistics Korea Friday, a household of two or more on average had a monthly income of 4,445,000 won ($3,758.35) in the July-September period, up 0.7 percent from the same period a year ago. Household income growth has been depressed under 1 percent for more than a year.

When reflecting inflation, income decreased by 0.1 percent from the same period last year. Real income has been stagnant or contracting since the third quarter of last year.

Income for regular salary-earners gained 1.9 percent while that of self-employed individuals rose 1.1 percent. Transfer income in the means of government subsidy increased 0.4 percent. Income from assets shrank 31.9 percent on year in the third quarter due to little yield from bank savings.

Household disposable income, the amount of money that a household can actually spend after paying taxes or other welfare contributions, averaged 3,607,000 won in the third quarter, up 0.7 percent on year.

Consumer sentiment remained tepid due to stagnant income.

The average household spending inched up 0.7 percent to 2,579,000 won in the third quarter compared to the same period last year.

The average propensity to spend stayed unchanged at 71.5 percent as a year ago, which means that a family earning 1 million won opts to spend 715,000 won and saving the rest for the rainy day.

Of disposable income, Korean household on average saved 1,028,000 won a month, up 0.8 percent from a year-ago period.

The tough economy has been harsher on the low-income and working class.

The monthly income of the lowest 20-percent income group shriveled 5.9 percent on year to 1,417,000 won in the third quarter. In the same period, the top 20-percent income category saw a 2.4 percent gain to 8,545,000 won.

By Kim Gyu-sik

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