South korea: South Korea's average household income increased by 2.4 percent in the first quarter compared to the previous year, driven by rising wages and an increase in the number of pensioners, according to government data released on Thursday. The average monthly household income reached 5.48 million won (US$3,649) during the January-March period.

According to Yonhap News Agency, the Ministry of Data and Statistics reported that when adjusted for inflation, household income saw an on-year increase of 0.4 percent in the first quarter. Wages, a key component of household income, rose slightly by 0.3 percent to an average of 3.42 million won per month, attributed primarily to salary increases among employees.

Income from business operations averaged 925,000 won monthly, marking a 2.6 percent rise from the previous year. Meanwhile, transfer income saw a significant jump of 9.7 percent to 964,000 won, largely due to an increase in National Pension Service beneficiaries, totaling 7.59 million in January, a 7 percent rise from the previous year.

Household spending also rose, with monthly expenditures growing 4.2 percent to 4.24 million won amid rising consumer prices influenced by the Middle East conflict. Consumption spending, which includes purchases of goods and services, increased by 5.3 percent to 3.1 million won. The data ministry noted that this increase was primarily due to higher spending on transportation, health care services, dining out, and accommodation.

Non-consumption spending, which encompasses taxes, insurance premiums, and interest payments, increased by 1.2 percent to 1.13 million won. The average monthly income of the bottom 20 percent income bracket rose by 2.7 percent to 1.17 million won. In contrast, the top 20 percent income group saw a 4.2 percent increase to 12.37 million won, buoyed by bonuses from conglomerates following the global artificial intelligence boom.

The distribution ratio for disposable income, an indicator of income equality, rose to 6.59 in the first quarter from 6.32 a year earlier, indicating wider income inequality. This ratio suggests that the top 20 percent income bracket earned 6.59 times more than the bottom 20 percent during the period.

The finance ministry stated, "The government will focus efforts on stabilizing people's livelihoods by closely managing the prices and supply of products tied to daily living and offering support to vulnerable groups, along with efforts to address economic disparities."