Young Koreans aware of status are squandered on luxury goods to demonstrate the wealth they have, saving little or nothing because buying a home becomes unaffordable. When credit card companies recently released expensive production cards with impressive names, they were surprised by the number of consumers in their twenties and thirties who asked for them.
These cards are sometimes favored by other middle-aged people due to higher rates. But a staff member at a credit card company said, “I didn’t expect other young people, who are the biggest users of cell transactions, to show so much enthusiasm for premium physical cards. Credit cards seem to have a source of pride among them. because they can show them.”
All that shines is not gold, however, Samsung Card’s American Express Gold card, which has updated only one existing plastic card, has been loud among young consumers since its launch last month. Daily emissions increased by 748% and consumers aged twenty-thirty accounted for 31% and 40% of all applicants.
On the other hand, forty-fifty-year-old consumers are more sober.
To download this card, a visitor will have to pay 55,000 W per production and an annual user payment of 300,000 W (US$1-1,185 W). But a Samsung Card staff member said, “It turns out that young consumers are willing to settle for payment to get a sumptuous credit card.”
Hyundai Card last month introduced the high-end “limited” Zero Edition 2 plastic, made of stylish metallic fabrics. However, although the benefits are the same as for a normal piece of plastic, the display has multiplied by 2.5, and consumers between 20 and 30 years old account for 85%.
Overall intake has declined amid the coronavirus epidemic, but young consumers who can do so are squandered on luxury goods.
Spending through young consumers on high-end products at the Shinsegae branch increased by 30.1% year-on-year in the first part of this year. This compares with the expansion of 19.7% in 2018 and 20.3% last year, when things were going well.
At the Lotte branch, 20 luxury goods were also spent 25.7% more at the same time and 30% 34.8%. Sales of department stores fell 14.2% in the first part of this year, but luxury sales increased to 9.2%.
This dance on the volcano can also be noticed in the car market. According to the Korean Automobile Importers and Distributors Association, 37 of the 80,195 consumers who bought an import in the first part of this year were teenagers, aged 20 or 30.
Some 1,362 of the 2,665 BMW 520 sold in the first six months were purchased through consumers aged 2 to thirty. Sedan costs 60 million W. Experts say a lot of surplus money is being spent at the national point because the coronavirus epidemic has prevented others from spending it abroad.
Another thing about this trend is the mentality of young Koreans to live day to day. A 32-year-old man who used his savings to buy luxury items as a gift for his family circle said, “The high costs of the apartments have made me feel powerless and frustrated, so I need to look for the little satisfaction I can get now. “