Some point out that despair over the rigid hierarchy of Korean society is spewing out as luxury goods consumption, especially as young people are increasing their consumption of luxury goods. Bloomberg reported in January that Koreans’ per capita consumption of luxury goods reached $325 last year, surpassing Americans (280 dollars) and Chinese (55 dollars) to become the world’s No. 1 in terms of homeowners’ intoxication and young people’s alternative consumption of high-priced products.During the COVID-19 crisis, housing prices in Korea doubled in some cities, leading to luxury consumption as those with homes felt rich. He also pointed out that the rise in housing prices led to the abandonment of home purchases, which further increased demand for luxury goods centered on young people.According to Lotte Members’ analysis, the number of luxury goods purchases in their 20s in 2021 increased by 70% from 2018, the highest increase among all age groups. Bloomberg pointed out that South Korea’s household debt is at a more serious level than the U.S. and Japan, and housing prices could fall steeply and face headwinds.The Japanese version of Newsweek reported, “The (Korean) preference for luxury goods, which seems to be obsessed, seems to be meaningful to compensate for the lack of satisfaction in life.” The media pointed out that young Koreans, whose social status has become difficult due to the world’s highest college graduate poverty rate, the most serious unemployment rate, and the rigid hierarchy, are trying to gain satisfaction by consuming luxury or fake luxury goods.Italy’s national newspaper Sole 24 Ore, famous for producing luxury goods, said Korea “shined like a star” in the global luxury market, adding that collaboration between K-pop stars such as BTS and Black Pink, which are enjoying global popularity, is leading to increased consumption. The media said, “Last year, Italy’s exports to Korea increased 4.4% compared to 2021,” adding, “Fashion-related products such as leather products, shoes, clothing, and jewelry led to the increase in exports.”In fact, it is natural for famous Korean department stores (Lotte, Hyundai, Shinsegae, and Galleria) to line up for luxury goods stores.Of course, you have to wait for about a few hours, and you seem to feel and enjoy it as a trend.Even the general public, not the privileged rich, is showing off on various social media through possessiveness and winning.The situation in Korea is also active in used and private trading sites for luxury goods.
JENNIFER KIM
Asia Journal
