With oil prices reaching all-time lows, the daily habits of Koreans are changing. (Image : Yonhap)
SEJONG, Jan.18 (Korea Bizwire) – With oil prices reaching all-time lows, the daily habits of Koreans are changing.
The number of people traveling abroad or buying large vehicles such as SUVs is increasing. People are also choosing to drive to work instead of taking public transportation.
The number of people enjoying overseas travel is increasing. With international oil prices plummetting, fuel surcharges for international flights have been dropped to zero over the past five months, allowing people to travel at more reasonable prices.
According to the Korea Tourism Organization, there was a 26.2 increase in the number of people who traveled abroad in November 2015 compared to the same period in the previous year.
In addition, with the drop in oil prices, large cars such as SUVs are gaining popularity.
According to the Ministry of Trade, Industry and Energy, the number of cars sold in the domestic market reached 1,833,000 units last year, which was a 10.4 percent increase over 2014, and an all-time high.
The sales share of light-weight vehicles (15.4% to 13.1%), compact cars (18.7% to 15.8%), and mid-sized cars (17.0% to 15.8%) decreased, but for SUVs grew from 27.8 percent in 2014 to 34.1 percent.
The release of new vehicles and lower taxes could have played a role, but the biggest contributing factor for the increase in sales is seen to be lower fuel prices due to the drop in oil prices.
However, low oil prices are not welcomed by all. Those who invested in derivatives of international oil prices are at risk of significant losses.
By Francine Jung (francine.jung@kobizmedia.co.kr)
