S.Korea's income inequality narrows on income-driven growth policy

Source: Xinhua | 2019-11-22

South Korea's income inequality narrowed down in the third quarter on the government's income-driven growth policy to bolster household income of the low-income bracket, statistical office data showed Thursday.

The ratio of income of the top 20 percent households to income of the bottom 20 percent households, which have at least two family members, was 5.37 in the July-September quarter, down from 5.52 tallied a year earlier, according to Statistics Korea.

Income of the bottom 20 percent households grew 4.3 percent in the third quarter, after sliding 7 percent a year earlier. Income of the top 20 percent households rose 0.7 percent in the quarter.

The bottom 20 percent households' earned income declined 6.5 percent in the quarter, but it was offset by welfare policies, such as national pension fund, basic fund for the low-income bracket, childcare subsidy and unemployment benefits.

The overall income of households in other income brackets also increased in the third quarter.

South Korean President Moon Jae-in said the effect of the income-driven growth policy came into a clear view in the third quarter, vowing to continue the policy efforts for the inclusive growth, according to the presidential Blue House.