SEOUL, KOREA - The ratio of households in deficit has hit a record-high level in a few years. According to the National Statistical Office on August 26, the percentage of those households (more than 2 family members) incurring deficits in their finances was 23.0 percent, up 0.9 percentage point. A household in deficit is defined as one whose spending is higher than disposal income.

 

By income bracket, the share of deficit households among the second lowest group (bottom 20-40%) was 26.8 percent, 3.1 percentage points higher than the same quarter last year. The comparable figure for those income level between 40 and 60 percent was 19.8 percent, up 3.8 percentage points.

 

An official with the National Statistical Office said, "The speed with which income of the second and third lowest income group has increased was relatively slower than any other income groups, while their consumer spending has accelerated, which is why their share of deficit households has increased."