South Korea’s household income disparity between the top and bottom brackets eased for the first time in two years in the quarter ended December, largely through social benefits and subsidized jobs from the government.

Business income however declined for five consecutive quarters, raising concerns about further deterioration in self-employed businesses amid the virus scare.

According to data released by Statistics Korea on Thursday, the average monthly nominal income of households in the bottom 20 percent bracket rose 6.9 percent to 1.324 million won ($11,047.40) in the quarter ended December.

The increase largely owed to the significant rise in labor income that added 6.5 percent for the first time in eight quarters amid the government’s job campaign. The business income also gained 11.6 percent, and the transfer income, or social benefit, 6.5 percent.

The income gap between the top and bottom quintiles slightly eased to 5.26 times from 5.47 times a year ago as the gain in average nominal income of the top 20 percent group slowed to 1.4 percent to 9.459 million won.

Labor earnings of the top 20-percent cadre added 3.4 percent to 7.117 million won during the period, while business earnings slipped 4.2 percent to 1.719 million won.

Meanwhile, average nominal income of all households expanded 3.6 percent to 4.772 million won in the final quarter, unchanged from the growth a year earlier. Average nominal disposable income

Average nominal disposable income rose 2.0 percent on year to 3.748 million won. Earned income was up 5.8 percent, while business income was off 2.2 percent.

By Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]