The Korea Herald


Household non-consumption expenditures surge

By Korea Herald

Published : March 11, 2012 - 20:33

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The portion of taxes, insurance payments and financial costs against South Korean household income reached a record high last year due mainly to increased debts and social insurance contributions, data showed on Sunday.

According to data compiled by Statistics Korea, South Korean households with two or more members spent a monthly average of 722,000 won ($645) on taxes, interest payments and insurance payments last year, which accounted for 18.8 percent of their monthly average income of 3.84 million won.

The portion of the so-called non-consumption expenditures by households was the highest since the country’s statics agency began to compile related data in 2003.

Household non-consumption expenditure refers to money spent on tax payments, insurance payments, interest payments on borrowed money and others.

The statistics agency said households’ increased financial burden, coupled with increased subscriptions to private and state-run insurances, jacked up the portion of non-consumption expenditures.

Their monthly interest payments jumped 13 percent on-year to 87,854 won last year, the data showed.

As of December, South Korea’s outstanding household debts reached a record 453.6 trillion won.

Their contributions to social security programs such as medical and employment insurance soared 12 percent to about 101,500 won, the data showed. (Yonhap News)