The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    INTERVIEWAhn Hyo-seop wanted to share dedicated love with 'A Time Called You'

  • 3

    SHINee launches first Japan tour in 5 years

  • 5

    Korea makes last-ditch bid to host World Expo 2030 in Busan

  • 7

    Heavy traffic jams mostly eased on 5th day of holiday

  • 9

    Consumers to face higher prices for daily necessities after Chuseok

  • 11

    Samsung chief visits Middle East to explore new businesses

  • 13

    Korea picks up 2 medals in table tennis as gold drought continues

  • 15

    Ruling party vows to investigate China's alleged influence operations

  • 17

    Shin-Hanul No. 2 nuclear reactor begins testing for full operation next year

  • 19

    Genesis GV80 Coupe looks to compete with Mercedes-Benz, BMW

  • 2

    Korea's Coast Guard apprehends 22 Chinese after illegal entry attempt

  • 4

    Distraught roller skater apologizes for costly premature celebration

  • 6

    S. Korea wins 1st table tennis gold in 21 yrs

  • 8

    Public transit fares to increase in Seoul and Busan this week

  • 10

    LA-based photographer captures Koreatown unfazed by pandemic

  • 12

    No regrets for roller skaters after taking silver in relay

  • 14

    National Assembly speeds up efforts to outlaw dog meat consumption in Korea

  • 16

    'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office

  • 18

    Internet-only banks outperform legacy lenders in labor productivity

  • 20

    4 injured in rockfall at tourist attraction on eastern island of Ulleung

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Wed, October 4, 2023 | 21:45
Society
Young Koreans flock to luxury goods as society tells them looks means everything
Posted : 2023-01-21 14:55
Updated : 2023-01-24 11:06
Lee Yeon-woo
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
                                                                                                 People line up in front of the Shinsegae Department Store in Seoul, in 2021, to enter its luxury boutiques. Newsis
People line up in front of the Shinsegae Department Store in Seoul, in 2021, to enter its luxury boutiques. Newsis

Millennials, Gen. Z lead buying trends, making Korea one of the biggest luxury markets in the world

By Lee Yeon-woo

Koreans' love of luxury goods is visible in almost all aspects of their everyday life. According to global management consultancy McKinsey & Company, Koreans are relatively fond of luxury products, with only 22 percent of them saying it is in bad taste to show off pricey clothes and accessories. This is lower than those in Japan (45 percent) and China (38 percent).

They have now become the biggest spenders on luxury goods per capita, outgrowing markets in China and even the U.S. Total personal luxury goods spending by Korean nationals increased 24 percent to 21.8 trillion won ($16.8 billion) in 2022 ― about 400,000 won ($325) per person ― according to a recent study by Morgan Stanley.

While luxury goods purchases had been considered the preserve of the middle class, millennials and Gen Z, commonly called "Generation MZ" here, have recently emerged as a notable consumer demographic leading this market boom.

"I bought my first luxury bag in my 20s when I got my first salary. I decided there would be occasions when I would need a good bag after starting my career. I have regularly bought luxury bags, both high and moderately priced ones, once or twice a year since then," Jang, a 32-old-year office worker based in Seoul told The Korea Times.

"I know they're expensive compared to my salary, but they give me confidence. I consider them as a gift to myself after working hard day and night," Jang added.

According to Shinsegae, Generation MZ accounted for almost 40 percent of total luxury sales in 2021. Luxury goods purchases by customers in their 20s have doubled every year, far exceeding overall luxury sales growth since 2016, when customers in their 30s became the largest buyers, Morgan Stanley stated.

                                                                                                 People line up in front of the Shinsegae Department Store in Seoul, in 2021, to enter its luxury boutiques. Newsis
People wait to enter a MONCLER shop at the Lotte Department Store in Songpa, Seoul in 2020. Korea Times file

Kwak Geum-joo, a professor of psychology at Seoul National University, explained it as a cultural difference between generations. She said while older people have developed the habit of saving money to survive economically tough periods, younger generations, born in affluent times, are more interested in spending money to treat themselves.

"They think it's an investment in themselves. They are willing to pay money if the product brings them satisfaction and joy. They think it's worth it," Kwak said.

Displaying wealth is also acceptable, and sometimes encouraged in Korean society. According to research by Economic Affairs in July 2022, more than 60% of Koreans believe that it is "fairly important" or "very important" to be seen as rich.

"Once when I was going to a friend's wedding, I found myself constantly checking whether my outfit looked good, whether it was too old, or whether the outfit made me look as if I was struggling financially. That's when I first felt the necessity to buy luxury goods," Kim Joo-yeon, 29, said.

"Appearance and financial success can resonate more with consumers in Korea than in most other countries," Morgan Stanley's report reads.

Social media fuels this tendency. Young customers post their purchases on social media, and luxury brands efficiently utilize the platform as a marketing tool.

"In a groupist culture like Korea, people care about how others view them. Nowadays we have more chances to see what others are doing, and more chances to show what we are doing through social media. The satisfaction of showing themselves engaging with luxury goods on social media is much larger than doing so in normal life," Kwak said.

However, it's not necessary to dwell on the negative aspects of luxury spending, according to Kwak.

"The problem is spending too much money on luxury goods compared to one's income. Saving some money while spending the rest on what gives satisfaction; I think that's wise consumption," Kwak said.

Emailyanu@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
LG
Top 10 Stories
1Public transit fares to increase in Seoul and Busan this week Public transit fares to increase in Seoul and Busan this week
2Ruling party vows to investigate China's alleged influence operations Ruling party vows to investigate China's alleged influence operations
3Genesis GV80 Coupe looks to compete with Mercedes-Benz, BMW Genesis GV80 Coupe looks to compete with Mercedes-Benz, BMW
4Korean steelmakers on alert over initiation of EU carbon border tariff Korean steelmakers on alert over initiation of EU carbon border tariff
5Korean shipbuilders seek lead over Chinese rivals in selling LNG carriers to Qatar Korean shipbuilders seek lead over Chinese rivals in selling LNG carriers to Qatar
630 out of 74 major financial companies lack female board member 30 out of 74 major financial companies lack female board member
7Hyundai, Kia to extend earnings rally on strengthening dollar, solid sales Hyundai, Kia to extend earnings rally on strengthening dollar, solid sales
8Dong-A Socio Group’s honorary chairman passes away at 96Dong-A Socio Group’s honorary chairman passes away at 96
9Lawmakers want chairmen of financial firms held accountable over misconduct Lawmakers want chairmen of financial firms held accountable over misconduct
10Returning home from Chuseok holiday Returning home from Chuseok holiday
Top 5 Entertainment News
1TREASURE takes flak for excluding Dokdo from its Japan tour map TREASURE takes flak for excluding Dokdo from its Japan tour map
2Two artists' windows to light and serenity Two artists' windows to light and serenity
3Crime thriller, romance series set to roll out in October Crime thriller, romance series set to roll out in October
4Korean literature featured as animation works at Incheon Airport Korean literature featured as animation works at Incheon Airport
5[PHOTOS] Kep1er returns with 'Magic Hour' to mesmerize fans PHOTOSKep1er returns with 'Magic Hour' to mesmerize fans
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group