South Korea's per-capita gross national income is approaching $40,000, but about 79% of the increase in national income in the first half of this year went to operating surplus earned by companies and self-employed business owners. National income rose sharply as export prices climbed, led by semiconductors, yet the effect on household income such as wages was relatively limited.
According to a report titled "2027 Economic Outlook: 2026-2030" released by the National Assembly Budget Office on the 18th, total operating surplus rose 224 trillion won of the 284 trillion won increase in nominal GNI in the first half, accounting for 78.7% of the total. Total operating surplus refers to income earned by companies and self-employed business owners through the use of capital.
Compensation of employees, the money workers receive in return for their labor, rose just 47 trillion won, or 16.5% of the total. Net taxes on production and imports, which accrue to the government, rose 11.2 trillion won, or 4.0%.
The gain in national income was driven by better terms of trade rather than by larger output and export volumes. Of the 21.8% increase in nominal GNI in the first half, trade contributed 16.8 percentage points, or about 77% of the total. Within that, trade prices accounted for 15.1 percentage points, or about 69% of the overall increase, while trade volumes contributed just 1.7 percentage points. That means rising export prices, led by semiconductors, drove the increase in national income.
The budget office said improvements in income can lag because gains in GNI are reflected first in corporate operating surplus before flowing to households through wages, performance-based pay and dividends. It also projected that the effect on household income could grow if stronger corporate earnings lead to special bonuses and expanded investment, given that large-scale investment is planned mainly in the semiconductor sector.