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Ratio of Households Spending Less Than 1 Million Won a Month at 7-Year High

Written: 2016-12-19 10:45:10Updated: 2016-12-19 10:53:55

Ratio of Households Spending Less Than 1 Million Won a Month at 7-Year High

Around 13 percent of South Korean faimilies are found to have spent less than one million won, or about 843 dollars, a month on average in the third quarter.
 
According to Statistics Korea on Monday, the ratio reached the highest since marking about 14 percent in the third quarter of 2009.
 
Whereas the ratio of households consisting of two or more people spending less than two million won has been growing, households spending between two million and four million won have been declining.
 
The percentage of households spending one to two million won a month rose to between 37 and 41 percent during the financial crisis, but dropped to around 31 percent in the first quarter of 2013. However, it has been increasing again recently to around 36 to 38 percent.
 
Around 26 to 30 percent of households spent between two to three million won during the financial crisis. The ratio rose to around 32 percent since then, but again fell to about 28 percent recently.
 
Ten to 12 percent of households spent three to four million won a month during the financial crisis. The ratio went up to around 14 to 16 percent, but again fell to between eleven and 12 percent recently. Households that spend more than four million won have remained more or less constant at around nine percent.
 
Experts say households have been reducing consumption as uncertainties about the future have been increasing due to corporate restructuring, high unemployment and debt. 

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