Statistics Korea Releases “2023 National Transfer Accounts”
Highest Surplus of 17.48 Million Won at Age 45
Largest Lifetime Deficit of 44.18 Million Won at Age 16
It has been found that South Koreans remain in deficit until the age of 27, enter surplus at age 28, and reach the highest surplus of 17.48 million won at age 45. The largest deficit occurs at age 16, amounting to 44.18 million won, according to statistical data.
According to the “2023 National Transfer Accounts” released by Statistics Korea on September 25, the life cycle deficit (consumption minus labor income) in 2023 was 226.4 trillion won, an increase of 31 trillion won (15.9%) compared to the previous year. Consumption rose by 7.0% to 1,459.2 trillion won, outpacing the 5.5% increase in labor income, which reached 1,232.8 trillion won. As a result, the size of the life cycle deficit grew.
Individuals experience a three-stage life cycle deficit pattern as they age: deficit → surplus → deficit. For Koreans, there is a deficit from ages 0 to 27, a surplus beginning at age 28, and a return to deficit at age 61. The largest deficit is 44.18 million won at age 16, while the highest surplus is 17.48 million won at age 45. Entry into surplus has remained steady at ages 27-28 since 2010, but the return to deficit has been delayed from age 56 in 2010 to age 61 in 2023, showing a shift over the past decade.
By age group, children (ages 0-14) and the elderly (65 and older), who have high consumption, recorded deficits of 184.4 trillion won and 179.2 trillion won, respectively. In contrast, the working-age population (ages 15-64), who generate labor income, recorded a surplus of 137.2 trillion won. Among the working-age group, those aged 35-54 saw labor income increase more than consumption, expanding the surplus. For those aged 25-34, consumption increased more than labor income, reducing the surplus. The 55-64 age group, which was in deficit in 2013, shifted to surplus in 2020 and has maintained this trend.
Per capita consumption peaked at 44.18 million won at age 16. For children (184.4 trillion won), educational consumption was the main factor, while for the elderly (243.8 trillion won), healthcare consumption played a significant role. Per capita labor income gradually increased after age 17, peaking at 44.33 million won at age 45, then gradually declining. Labor income for the working-age population increased by 4.9% to 1,168.1 trillion won, accounting for 94.8% of total labor income. Labor income for the elderly rose by 16.9% to 64.6 trillion won.
The National Transfer Accounts is a set of statistics focusing on changes by age, analyzing the relationship between consumption and labor income, and tracking the flow of economic resources across age groups (generations). It aims to analyze economic flows between generations by examining individual economic trends based on age structure. This is useful for assessing the impact of population structure and size changes-such as low birth rates and population aging-on the economy and society.
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