A person purchasing convenient food items at a convenience store (Image courtesy of CU)
SEOUL, May 9 (Korea Bizwire) — South Korean consumers reined in spending on everyday items and luxury goods in the first quarter of 2025, while showing a notable willingness to spend on travel-related expenses, according to new data from mobile analytics platform IGAWorks.
The firm’s Mobile Index data, based on estimated credit and debit card transactions across sectors, revealed a sharp 19% year-over-year drop in luxury goods purchases — the steepest decline among all categories. Spending also fell in books and event tickets (–14.3%), groceries (–9.0%), beauty and healthcare (–4.9%), and streaming and music (–3.4%).
In stark contrast, spending on airline tickets and taxis surged 20.7%, while expenditures in the travel and lodging category rose 5.5%. The data suggests consumers, while cutting back on daily necessities, are prioritizing experiences like travel.
Travelers crowd a departure lobby of Incheon International Airport, west of Seoul (Yonhap)
Retail patterns also reflected shifting preferences. Spending at department stores and duty-free shops increased by 4.3%, while online shopping and convenience store sales dropped by 9.5% and 2.0%, respectively.
Among online retailers, Coupang further solidified its dominance. In March 2025, Coupang accounted for 64% of all card-based e-commerce transactions — up from 58% a year earlier. Competitors such as Gmarket (down from 9% to 5%), 11st (7% to 6%), SSG.com (6% to 5%), and Auction (3% to 2%) all saw declines. Only AliExpress posted a modest gain, increasing its share from 2% to 3%.
Even as total online shopping transactions fell nearly 10% in the first quarter due to broader consumer pullback, Coupang’s continued growth underscored its growing market dominance.
In the beauty and healthcare sector, CJ Olive Young maintained its overwhelming lead. It accounted for 67.3% of the sector’s total payment volume, reinforcing its status as the market’s dominant player. The app also recorded 6.88 million monthly active users in March, commanding a 90% market share in the makeup and cosmetics category. Notably, it held the top spot among all age groups — from teens to seniors.
The data paints a picture of cautious but selective consumer behavior, where essentials are being trimmed, but experiential and convenience-driven spending still finds room in tight budgets.
Lina Jang (linajang@koreabizwire.com)
