Statistics: South Korea's household surplus hit a record high last year

According to a statistical data released by the Korea National Statistical Office, South Korea's "household surplus rate" exceeded 30 % every quarter in 2020, setting a record high.

Household surplus refers to the proportion of the surplus after deducting consumption expenditure from disposable income in disposable income. In terms of surplus rate, it was 32.9% in the first quarter of last year , 32.3% in the second quarter, 30.9% in the third quarter and 30.4% in the fourth quarter.

The average monthly income per household increased by 3.7% year-on-year to 5.358 million won (about 30,870 yuan), but household expenditure decreased by 4.9% year-on-year to 3.945 million won. The average income per household increased in the second quarter (4.8%), the third quarter (1.6%) and the fourth quarter (1.8%) .

But with the exception of the second quarter ( 1.4%), household spending fell in the third quarter (-2.2%) and the fourth quarter (-0.1%).

Therefore, it is clear that the Korean household economy has fallen into a recession-type surplus under the epidemic. Experts pointed out that this is mainly due to the shrinking consumption of residents under the epidemic.

Generally speaking, the more people worry about a reduction in income, the less they will consume and the more they will save. In addition, household income will also increase due to the government's epidemic prevention subsidies, resulting in a recession-type surplus in household income and expenditure.

Although the data shows that South Koreans' household consumption expenditure has decreased slightly, the reduction in consumption expenditure is largely due to the reduction in face-to-face consumption caused by the COVID-19 pandemic. Moreover, as online consumption has gradually become one of the daily consumption methods, many daily consumption has shifted to online.

South Korean consumers' online consumption has maintained double-digit growth for many consecutive months, and their online purchases of everything from food and beverages to home appliances and electronic equipment have maintained a straight upward trend.

From historical experience, after a crisis, there is often a retaliatory consumption, and the scale of consumer spending increases. However, judging from the current situation of more than 400 new confirmed cases in South Korea in a single day (428 new cases on March 23), the economic uncertainty caused by the epidemic will continue, and the recession-type surplus of South Korea's household economy will continue for some time.

Household Economics

South Korea

Online consumption