Embassy of the Republic of Korea in the United Kingdom of Great Britain and Northern Ireland and Permanent Mission to the International Maritime Organization

Income Gap Grows Between Older,Younger Generations

It appears South Korea's young workforce of 20 and 30-somethings has been hit hard by the current economic downturn. Income growth among households headed by someone in his or her 20s or 30s is said to have fallen to one third of that of their counterparts in their 40s and 50s. Jang Souie has this report.

Report: Statistics Korea say average monthly income of families that are headed by those who are younger than 40 was four-million 76 thousand won over the third quarter of 2012.

This is a mere two-point-67 percent gain from a year ago, and is only about one third of family income growth by people in their 40s and 50s.

The average income of families run financially by someone in his or her 40s rose by seven-point-42 percent during the same period to four-million 684-thousand won. Households run by people in their 50s also saw their average income grow by eight-point-37 percent to four-million 624-thousand.

Family income growth among household heads in their 20s and 30s has been steadily declining since the fourth quarter of 2011 when the figure stood at five-point-31 percent. The figure then only rose zero-point-87 percent in the second quarter and two-point-67 percent in the third quarter last year.

On the other hand, people in the 40s and 50s maintained an income growth rate ranging from five-point-85 to more than ten-percent during the same period.

Some experts say that poor family income growth among 20 and 30-somethings was mainly attributable to rising youth unemployment and deterioration in the quality of jobs. Others also suggest the possibility that housewives in their 40s and 50s have joined the nation's job market to cope with the current economic downturn and boost family income.

Source: KBS World