S. Korean households' monthly income grows 3.5 pct in Q1

SEOUL, May 20 (Yonhap) -- South Korean households' monthly income grew 3.5 percent on-year in the first quarter thanks to improving employment and economic conditions, a government report showed Friday. According to the report by Statistics Korea, households' monthly income averaged 3.86 million won (US$3,558) in the January-March period, compared with 3.73 million won a year earlier. However, inflation-adjusted household income contracted 0.9 percent from a year earlier, following a 1.2 percent decline in the fourth quarter of last year. Their disposable income grew 2.9 percent on-year to a monthly average of 3.12 million won, the report said. The gain in households' monthly income was attributed to expanded employment and overall improvement in economic conditions driven by brisk exports. "Brisk exports and improving employment conditions continued to boost household income growth," the report said. In April, South Korea's exports rose 26.6 percent on-year to a monthly high of $49.77 billion, surpassing the previous record of $48.07 billion tallied in March. Labor market conditions are showing signs of steady improvement, with the nation's jobless rate inching down to 3.7 percent last month from 3.8 percent a year earlier. It was also down from 4.3 percent in March. Households' earned income increased 5.3 percent from a year earlier in the first quarter, while their business income rose 2.4 percent, according to the report. The report also showed household expenditures expanded 4.7 percent to 3.17 million won. Of the total, consumption expenditures came to 2.44 million won, up 4.3 percent from a year earlier. The increase is driven by growing consumption of food products and an increase in education spending, the report said. Non-consumption expenditures, which includes payments on taxes, pensions and insurance, expanded 6.1 percent to 737,000 won from a year earlier, according to the report.