The proportion of households that spent more money than they earned in the second quarter of this year increased by 4.4 percentage points from a year ago to 24.4%.



This means that one in four households is living in the red.



Deficit households increased the most in the lowest-income bracket.



Income fell, but household spending increased due to inflation and other factors.



According to the household trend survey for the second quarter released by the National Statistical Office, the proportion of households with deficits among households in the first quintile (lowest 20% of income) was 55.3%, an increase of 8.2 percentage points from the same period last year.



Households with deficits in the 2nd decile (25.4%, +4.8%p), the 3rd quartile (15.6%, +1.5%p), the 4th quartile (15.5% +5%p), and the 5th decile (10.5%, +2.8%p) Although the ratio has grown, the increase in the first quartile is particularly noticeable.



The proportion of households with deficits is the proportion of households with more consumption expenditure than the household's disposable income.



An official from the National Statistical Office said, "Last year, household income temporarily increased due to the nationwide disaster relief fund, but in the second quarter of this year, this effect disappeared and the income decreased from a year ago. The proportion of households has increased,” he explained.



In the second quarter, the average monthly income per household (4,287,000 won) decreased by 0.7% compared to a year ago, centering on public transfer income (172,000 won), while expenditure (3308,000 won) increased by 4%.



By income level, spending increased in the 1st, 2nd, 3rd, and 5th quintiles minus the quartile, and income only increased in the top 20% quintile.



Last year, the national disaster relief fund played a significant role as a shield to avoid the deficit, but this year it seems difficult to expect it.



The ratio of households with deficits in the second quarter of last year was 20%, 5.7 percentage points lower than in the second quarter of 2019.



In particular, the ratio of households with deficits among low-income families is worse than before the COVID-19 crisis.



The ratio of households with a deficit among households in the first quintile in the second quarter of this year increased by 2.6 percentage points from the second quarter of 2019.



The quartile increased by 0.3 percentage points, and the other quartiles decreased.



The first decile has a higher deficit than the other quintiles because they earn little money and have limitations in reducing essential expenses.



In the second quarter of this year, households in the first quintile earned an average of 966,000 won a month and spent 1,153,000 won on consumption, and in 2019, they earned 904,000 won and spent 970,000 won on consumption.



It is calculated that while income increased by 62,000 won, expenses nearly tripled by 183,000 won.



In 2020, he earned 10.31 million won and spent 1,077,000 won.



An official from the National Statistical Office said, "Consumption expenditure increased a lot compared to 2019, but there is an effect that prices of food and other goods have risen a lot."



The second quarter household trend survey did not reflect the 4th spread of COVID-19 and the consequent strengthening of social distancing. 



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