Monthly Income of Top 10 Percent of Households 18 Times That of Bottom 10 Percent

Where do the rich spend their money?

It was revealed that the rich in Korea spend a large amount of money on “well-being,” such as beauty, and dining out instead of smoking.

On May 25, the Korea National Statistical Office found in its first quarter (January to March) analysis of trends of nationwide households’ total income and expenses that households with the top 10 percent of income spent 18,305 won on average a month, which was three percent less than the expenditures of the lowest 20 to 30 percent of income (18,868 won).

The amount of money that households with the top 10 percent of income spent was higher than the spending of the households with the lowest 10 percent of income, 15,120 won.

However, considering the gap in the amount of money (3,185 won) spent, and the fact that the high-income bracket smokes more expensive cigarettes than the low-income bracket, it’s presumed that the actual amount of smoking by the lowest 10 percent of income is higher than that of households in the top 10 percent of income.

Meanwhile, the households in the top 10 percent of income have spent an average of 598,654 won a month, which was seven times higher than households with the lowest 10 percent of income, 85,645 won.

The top 10 percent of households also spent 5.2 times more money on dining out, an average of 409,612 won a month, while the lowest 10 percent of households spent 78,711 won.

In addition, the rich showed a high level of interest in appearance and health.

The top 10 percent of household spent 102,416 won a month on average on beauty, which was 3.1 times more than those with the lowest 10 percent of income spent (29,193 won).

Regarding health and medical costs, the households in the top 10 percent of income spent 2.8 times more than those with the lowest 10 percent of income.

The average monthly income of the top 10 percent of households was 7,763,731 won while the lowest 10 percent of households earned 427,684 won a month on average.

legman@donga.com