Visitors are on summer vacation at the beach in Sokcho, 213 kilometers northeast of Seoul, on July 2, 2022. (Yonhap)
SEOUL, July 20 (Korea Bizwire) — Despite soaring consumer prices, exchange rates and interest rates, the polarization of consumption is becoming more severe than ever.
Even Koreans in their 20s and 30s are choosing to stay at home rather than go on a holiday this summer.
A 30-year-old office worker surnamed Jeong wanted to go on a domestic trip between late July and early August but accommodation prices forced him to give up on his plan.
“Resorts and hotels in Gangneung or Busan cost a couple hundred thousand won per night, and I wasn’t going to pay that,” Jeong said.
The reservation rate for foreign travel packages, which tend to be more costly, stood more or less the same.
“We’re checking foreign travel reservations every day, and there haven’t been any recent cutbacks on their recovery,” an official at a tour agency said.
Polarization is also observed in the restaurant business amid rapidly increasing prices and interest rates.
The price of luxury “bingsu” at major hotels, popular among young South Koreans, has gone up to around 80,000 won (US$60.95) this year, up by 20,000 won.
Bingsu is a traditional dessert made up of shaved ice, red bean and an array of toppings such as milk syrup and rice cake.
Despite the price hike, consumers are willing to spend more than an hour on weekdays lining up in front of stores to buy the cold dessert.
A restaurant that specializes in omakase sushi in Gangnam District, run by a famous chef, was fully booked for this upcoming Saturday, July 23. The restaurant’s evening menu costs 200,000 won per person.
With rising uncertainty in the future, young South Koreans who once enjoyed the YOLO (You Only Live Once) culture, in which people prioritize spending for immediate satisfaction over savings, are now taking different approaches to consumption.
“With the worsening economy, people other than those with a considerable amount of assets are bound to struggle,” said Lee Myoung-jin, a sociology professor at Korea University.
“It’s not just about the distinct behavior of each generation, but an overall effect caused by macroeconomics.”
H. M. Kang (hmkang@koreabizwire.com)
