ID :
183545
Sun, 05/22/2011 - 05:17
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Shortlink :
https://oananews.org//node/183545
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Households' non-consumption expenditures on the rise
SEOUL (Yonhap) - The ratio of non-consumption expenditures to South Korean households' income jumped to the highest level during the first quarter, a report showed Sunday.
According to the report by Statistics Korea, South Korean households paid a monthly average of 737,000 won (US$681) during the January-March period on non-consumption expenditures that include payments on taxes, insurance, pensions and interest on borrowings.
That represents 19.09 percent of households' monthly income of 3.86 million won, up 0.46 percentage points from a year earlier. The ratio is the highest ever since 2003 when related data started to be collected.
Higher non-consumption expenditures translate into less disposable income for households.
The growth stemmed partly from more interest payments on households' borrowings, which jumped to 436.6 trillion won as of the end of April, the highest level in history, according to the report.
Expanded borrowing and increased interest rates forced households to pay 81,254 won in interest every month during the first quarter, up 11.69 percent from a year earlier.
As the government hiked fees on national health insurance last January, households have to pay more on social welfare programs, the report showed.
Pensions and other social welfare programs also grew due to the aging population, another factor that drives up households' non-consumption expenditures, it added.
According to the report by Statistics Korea, South Korean households paid a monthly average of 737,000 won (US$681) during the January-March period on non-consumption expenditures that include payments on taxes, insurance, pensions and interest on borrowings.
That represents 19.09 percent of households' monthly income of 3.86 million won, up 0.46 percentage points from a year earlier. The ratio is the highest ever since 2003 when related data started to be collected.
Higher non-consumption expenditures translate into less disposable income for households.
The growth stemmed partly from more interest payments on households' borrowings, which jumped to 436.6 trillion won as of the end of April, the highest level in history, according to the report.
Expanded borrowing and increased interest rates forced households to pay 81,254 won in interest every month during the first quarter, up 11.69 percent from a year earlier.
As the government hiked fees on national health insurance last January, households have to pay more on social welfare programs, the report showed.
Pensions and other social welfare programs also grew due to the aging population, another factor that drives up households' non-consumption expenditures, it added.
