South Korea releases financial cycle data, showing peak surplus at age 45

Seoul (ANTARA) - South Korea’s Ministry of Statistics released data on Thursday regarding the financial cycles of its citizens, who are currently facing a ‘deficit-surplus-deficit’ situation, with the peak surplus occurring at age 45.

Based on the 2024 National Transfer Accounts, the data analyses the relationship between expenditure and labour income across different age groups.

From birth until the age of 27, South Korean citizens spend more money than they earn, resulting in a financial deficit. This deficit peaks at age 16, reaching an average of 46.03 million won (100 won = Rp1,281), driven by private tutoring costs for university entrance.

South Korean citizens only begin to experience a financial surplus at age 28, when their labour income exceeds their expenditure, a trend that continues until age 60.

The financial surplus reaches its peak at 19.32 million won at age 45, coinciding with the period when per capita labour income reaches its highest point of 46.51 million won.

Income then begins to dwindle from age 61, as South Koreans enter retirement, causing their financial situation to shift back into a deficit. This is driven by the increase in medical and healthcare expenditures in old age.