By Lee Hyo-sik
Staff Reporter
The income gap between the haves and have-nots is widening in urban areas as earnings of high-income salaried households increase at a faster pace than those of low-income families.
According to the National Statistical Office (NSO) Monday, the top 20 percent urban salaried households earned 5.41 times more than the bottom 20 percent in the third quarter, up from 5.12 times the previous quarter.
The monthly income of the richest 20 percent of urban salaried households averaged 7.3 million won, ($8,000) up 11.3 percent from a year ago, while the bottom 20 percent made 1.3 million won, up 8.8 percent from the previous year.
Overall, salaried urban households earned a monthly average of 3.7 million won in the July to September period, up 9.2 percent from a year ago, while spending averaged 2.4 million won per month, up 10.2 percent.
The disparity ratio of earned income between the top 20 percent and the bottom 20 percent in urban areas has been increasing since 2003 when the Roh Moo-hyun Administration was inaugurated.
In 2006, the ratio dropped to 4.91 times from the previous year but rose back to 5.41 times in the third quarter this year, reflecting deepening polarization. The earned income of the top 20 percent of urban workers was 4.78 times more than those in the bottom 20 percent in 2003 _ the figure rose to 4.79 times in 2004 and 4.94 times in 2005.
One of the top policies of the Roh administration was to redistribute wealth to lessen the gap between the rich and the poor rather than focusing on economic expansion.
``The gap in earned income _ the major source of cash flow for urban salaried workers _ widened in the July to September period partly because high-income workers received larger Chuseok (Korea's Thanksgiving holiday) bonuses and other performance-based payments than low-income wage earners,'' an NSO official said.
But he also said in general, the rich are getting richer, while the poor are getting poorer, adding the government should make efforts to help both public and private sectors create higher paying jobs for the low-income bracket.
The statistical office also said the income difference between the top 20 percent of households nationwide, including those in agricultural and fisheries areas, and the bottom 20 percent narrowed to 7.52 percent in the third quarter from 7.79 percent a year earlier.
The average monthly income of households across the country increased 7.4 percent to 3.3 million won, while the average spending reached 2.2 million won, up 8 percent.