Think of him as “the average Kim,” the Korean version of the average Joe.The average Kim was likely encouraged by recent news that the economy grew by 0.2 percent last year, a relatively impressive performance considering most countries posted steep declines.
But he didn’t benefit from that slight growth - or even maintain his pre-economic crisis lifestyle. Instead, government data show he went in the opposite direction, underscoring the effects of the downturn on the middle class. The average Kim’s household budget for 2009 took a hit, as his average paycheck shrunk while the cost of educating his children swelled.
He earned an average of 4.23 million won ($3,700) every month, including 3.84 million won from his employer and an extra 150,000 won he made from a small real estate property he rented out, which is categorized as “business earnings” by tax authorities.
That’s about 45,000 won less than the previous year, the result of pay cuts and downsizing at the average Kim’s employer. His monthly paycheck actually shrank by 54,000 won, though his earnings from other sources slightly increased.
At the same time, the average Kim saw a 1.3 percent decline in purchasing power tied to an uptick in inflation, further impacting his finances.
A quick glance at the household budget shows that the average Kim’s family had monthly expenses of 3.46 million won, a figure that includes 2.66 million won spent on everything from household items (88,000 won), food (334,000 won) and private education for his children (508,000 won). He also doled out 800,000 won monthly for other costs such as taxes (180,000 won), monthly pension payments (130,000 won), interest on debt (90,000 won) and insurance (400,000 won).
The one bright spot is that he paid 10,000 won less in taxes than he did in 2008.The biggest headache for the average Kim’s budget was, not surprisingly, the ever-burgeoning cost of education.Kim spent an average of 510,000 won every month in this area last year, including 320,000 won to send the kids to hagwon, or after-hours private education institutions. The government has promised it will help ease financial burdens on local parents tied to education, but Kim wound up spending about 30,000 won more every month in this area. Money spent on eating out and accommodations other than the home came next at 352,000 won.
Who is the average Kim?
Each family must designate someone as its head, and that person must register as such with the government.
The typical head of a household is 44.4 years old. Six out of 10 household leaders in Korea are employed.
Most preside over a four-member household, and 61 percent of them are the sole breadwinners in their families.
Most preside over a four-member household, and 61 percent of them are the sole breadwinners in their families.
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