More Than Just a Trend: ESG Emerges as Core Principle in Gen Z Consumer Behavior (Image supported by ChatGPT)
SEOUL, Aug. 6 (Korea Bizwire) — As environmental, social and governance (ESG) principles become more embedded in Korean business and society, a growing number of young consumers—particularly Generation Z—are aligning their purchasing behavior with personal values and ethical considerations.
According to a recent survey released by the Korea Chamber of Commerce and Industry (KCCI) on August 6, over 66.9% of Koreans aged 17 to 28 said they are willing to pay more for products made by companies that actively engage in ESG practices. The survey polled 350 participants nationwide.
More than 63% also reported that they have boycotted a company’s products due to unethical behavior or negative ESG-related controversies, reflecting a clear willingness among young consumers to withdraw support from brands seen as falling short of ethical standards.
This trend, known locally as “meaning out” (a term describing values-based consumer behavior), has emerged as a defining characteristic of Gen Z spending. Other key consumption trends include “jjantech” (a frugal saving lifestyle) and “Aboha” (short for “a very ordinary day,” symbolizing satisfaction in modest daily routines).
A scene bustling with citizens at a multi-purpose shopping mall. (Yonhap)
Generation Z is also highly sensitive to the sincerity of corporate ESG initiatives. Some 65.4% of respondents expressed concern about “greenwashing”—superficial or misleading environmental claims—suggesting that inauthentic ESG efforts could backfire among this demographic.
The survey further found that ESG practices are influencing career choices. Over half (54.2%) of respondents said they consider a company’s ESG performance when deciding where to apply or whether to accept a job offer.
“Companies that fail to practice sincere ESG management risk being rejected by the next generation of economic leaders,” said Cho Young-joon, Head of Sustainable Management at the KCCI. He added that the organization will continue promoting social value initiatives and responsible entrepreneurship to reflect the expectations of younger generations.
Korea’s Young Consumers Drive Rise in Values-Based Purchasing (Image supported by ChatGPT)
Lina Jang (linajang@koreabizwire.com)
