Korea’s gross national income fell 0.1 percent from a quarter earlier to 375 trillion won ($312 billion) in the April-June period, marking the first drop since the fourth quarter of 2010, according to figures released by the central bank last week.

The decline was attributed mainly to a significant slump in net factor income from abroad ― the difference between incomes earned and paid overseas. Net factor income from abroad plunged from 5.6 trillion won in the first quarter to 1.3 trillion won in the second quarter.

Bank of Korea analysts cited a base effect for the lowest GNI growth rate in 18 quarters. True, the rate for the January-March period of this year was unusually high at 4.2 percent as Korean companies received most of their annual dividends on their overseas investments in the first quarter. Net factor income abroad includes gains from investing in foreign equities and properties and wages earned overseas.

Even if the base effect is factored in, the fall in the GNI may still be seen as reflecting the weakening growth momentum of the Korean economy.

The BOK data also showed the country’s gross domestic product grew 0.3 percent from three months earlier in the April-June period, marking a growth rate below 1 percent for the fifth consecutive quarter.

Korea’s exports, the main growth engine of Asia’s fourth-largest economy, fell for eight straight months in August due to slumping global trade, China’s economic slowdown and currency fluctuations. With overseas shipments on a downward trend, the government’s stimulus packages and the central bank’s rate cuts have done little to reinvigorate the economy.

It now seems difficult to reach the growth target for this year ― set by the government at 3 percent and the central bank at 2.8 percent. The sluggish growth is likely to continue to hamper Korea from achieving its per capita GNI goal of $30,000. A local economic research institute recently forecast that the country’s per capita income would decrease from $28,101 last year to $27,600 this year, if the value of the Korean currency remained weak against the dollar.

It predicted Korea’s per capita GNI, which exceeded $20,000 for the first time in 2006, would reach the $40,000 mark by 2023. It took far less time for other advanced economies to double their per capita income.

Given the unfavorable conditions facing the Korean economy, however, the projection may still seem too optimistic.

Utmost efforts should be put into creating more jobs, which will be the most effective way to bring more income to households. In this regard, the parliament should be quick to pass a set of bills aimed at reinvigorating the economy, particularly one designed to lift regulations on the service sector that is more instrumental in increasing employment.

Lawmakers should also move to ratify a free trade agreement signed with China in June as early as possible. The implementation of the accord within this year is expected to help increase Korea’s exports by $13.5 billion. The main opposition party should stop its unreasonable attempt to delay parliamentary deliberation on the ratification bill.

It is also important to push through reforms of public, financial, labor and educational sectors, which are crucial to boost the country’s growth potential.

In a more immediate term, effective measures should be taken to bolster domestic spending by further lowering or scrapping consumption taxes on more goods.

What is also needed is to keep in check the steep growth of household debt that has exceeded 1.13 quadrillion won. Income growth can hardly be expected to result in boosting economic vitality if debt grows at a faster pace.