In the second quarter, income from held asset such as land rental income and stock dividends rose 21% from a year earlier, while earned income flatlined for the second straight quarter. Real earned income, reflecting prices, contracted for the second quarter in a row. As a result, the growth rate of consumer spending also slowed.
◇ Real earned income falls while transfer and property income rise in the 20–21% range
According to the results of the Household Trends Survey for the second quarter of 2026 released by the Ministry of Data and Statistics (MODS) on the 27th, the average monthly income per household in the second quarter was 5,295,000 won, up 4.5% from a year earlier. The growth rate was the highest since the first quarter of 2025 (4.5%). Real income also increased 1.5%, widening from the first quarter (0.4%).
The income increase was thanks to higher transfer income, business income, and property income. Transfer income refers to grants, pensions, and subsidies received free of charge from the government or corporations. Government compensation for high oil prices is also classified as transfer income. Second-quarter transfer income was 931,000 won, up 20.4%. Business income was 977,000 won, up 3.8%. Property income was 67,000 won, up 21.3%. Property income includes interest, dividends, private pensions, retirement pensions, and land rental income.
Earned income, which accounts for the largest share of income, was 3,218,000 won, up 0.8%, essentially flat. In the first quarter as well, the earned income growth rate was just 0.3%. Real earned income fell 2.1%, marking a second straight quarterly decline after the first quarter (-1.7%). An official at the Ministry of Data and Statistics (MODS) said, "The number of wage workers decreased, and the wage growth rate at enterprises slowed."
Income increased across all first through fifth quintiles. The average monthly income of first-quintile households, the bottom 20% by income, was 1,283,000 won, up 7.5%, the highest growth rate. The second quintile rose 5.9% to 2,975,000 won. The third quintile increased 5.5% to 4,554,000 won, and the fourth quintile expanded 4% to 6,509,000 won. The fifth quintile rose 3.8% to 11,150,000 won.
◇ Income gains outpace consumption, surplus up 9.6%
Average monthly consumer expenditure per household in the second quarter was 2,932,000 won, up 3.4% from a year earlier. The growth rate slowed from the first quarter (5.3%). Real consumer spending rose only 0.4%, with the growth rate easing from the first quarter (3.1%).
Among spending categories, household goods and domestic services (17.9%), recreation and culture (7.6%), and food and lodging (3.5%) increased. In contrast, transport fell 0.5% and alcohol and tobacco fell 2.2%. In addition, non-consumption expenditure such as interest costs and social insurance was 1,060,000 won, up 1.9%.
Disposable income, which is income minus non-consumption expenditure, was 4,235,000 won, up 5.2%. As the disposable income growth rate exceeded the consumer spending growth rate, the surplus rose 9.6% to 1,302,000 won. The average propensity to consume, the share of disposable income spent on consumption, fell 1.2 percentage points to 69.2%.
Meanwhile, the ratio obtained by dividing the average income of the top 20% by that of the bottom 20% (equivalized disposable income-based quintile share ratio) was 4.97 times, the lowest since 2006. An official at the Ministry of Data and Statistics (MODS) said, "First-quintile income rose more due to the impact of grants, and while the fifth quintile also increased, its income growth rate was somewhat lower than that of some other quintiles."