The MZ generation, which had been spending ostentatiously to meet their current needs until just recently, is now studying finance to reduce consumption and accumulate assets for the future. Why is the MZ generation so enthusiastic about financial technology?

The first reason is the economic recession caused by COVID-19. Due to the recession in the labor market, inflation, and soaring real estate, it is difficult for the MZ generation to live a rich life only with earned income. If the previous generation was able to save their salaries and buy a house, it is no longer possible for MZ generation to buy their own house with the salary of office workers only. As such, the MZ generation is anxious about preparing for their own homes and preparing for their retirement, so they want to earn additional income through investment technology in addition to their salaries.

The second reason is the increase of the ‘FIRE’. ‘FIRE’ is short for ‘financial independence retire early’ and refers to people who want early retirement after achieving economic independence at a young age. Just as the ‘FIRE’ spread around the United States during the 2008 financial crisis, the emergence of FIRE is in contact with an uncertain economic situation. The perception of the MZ generation that there is no longer a “lifetime job” seems to have boosted the emergence of the ‘FIRE’ in Korea. In addition, distrust in the social safety net that pensions will not be able to prepare for retirement also affected the increase in the number of ‘FIRE’.

Recently, the MZ generation is engaged in financial technology activities through various investment methods. This is because their financial technology methods are more volatile than stable methods such as deposits and installment savings, but they are attractive in that they can expect more returns. Their financial method is as follows. Typical examples are stock and coin. It is actively used among the younger generation, who have a relatively strong aggressive investment tendency.

Virtual currencies like coin are usually obtained from mining or purchased by paying cash, but in order to mine virtual currencies, the price has risen due to increased demand for memory semiconductors such as graphics processing units (GPU) and DRAMs. Representative virtual currencies include Bitcoin, Ethereum, Dodge Coin, and Ripple, which have the No. 1 market capitalization.

However, in the case of virtual currency, unlike stocks, there is a risk of major damage because the market price continues to change in real time, and carbon dioxide emissions increase rapidly due to increased demand for large amounts of electricity and high-performance computers to mine, causing serious environmental pollution. For the environment, many countries are considering mining bans.

In addition, new financial methods such as “Resell-tech” “Music-tech,” “Art-Tech,” and “NFT” are emerging. Currently, there are two main trends in financial technology in the MZ generation: partial investment and reselltech. Both methods are characterized by low entry barriers and low initial investment costs that can produce fast and high returns. First, partial investment is an technique in which several investors invest together in one asset and share profits. This was developed from a “decimal point investment” that allows one share to be split and traded, and is now used in various fields such as art, real estate, music copyright, and luxury bags. In the case of digital images, videos, and music files, there was a problem that it was difficult to identify the original because it could be copied in large quantities, but with the emergence of a blockchain technology called NFT, it became possible to invest in pieces of music copyright or art.

Representative partial investment platforms of Korea are Tessa, Musicow, and Bancow. Tessa is an art partial investment platform that allows users to invest in works of famous artists from 1,000 won. This investment method using art is also called ‘Art-Tech’, which is a method of making profits by reselling art works. Investors can purchase 1/n of artworks, and they cannot own the real thing of the work, but the risk is also low as the investment cost is small.

‘Musicow’ which is a music copyright sharing platform is also gaining popularity among investors in Korea. After purchasing a stake in the music source, ‘Musicow’ gives investors the authority to buy partial stake. Once a stake transaction has been made, music sources can be bought and sold like stocks, and if the music becomes popular, investors can earn big profits. Even if you don’t buy and sell shares of music, you can earn regular profits through copyright fees. Currently, the cumulative number of members of ‘Musicow’ has exceeded 1 million, drawing attention from the MZ generation.

The Korean beef partial investment platform ‘Bancow’ is also gaining popularity among the MZ generation due to the possibility of stable investment. The investment is used for raising Korean beef, and if cattle are sold through an auction, they can receive investment and profits as much as their shares. The existing Korean beef investment market was exclusive to high-value wealthy people and institutional investors, but ‘Bancow’ lowered the minimum investment to 40,000 won, making it easy for beginners and students to invest in Korean beef. As the number of partial investors increased due to the lowered entry barriers, farmers who relied on loans could borrow breeding costs without interest. The partial investment market is gradually growing as demand from the MZ generation, which wants to find new investment destinations with small amounts, and fintech companies, which want to pioneer new markets, match.

ResellTech is a combination of Resell and investment techniques and is to purchase rare-value products such as limited-edition shoes and watches and then resell them at high prices.The most famous of Resell Tech is Nike Draw, which is a limited edition sneaker lottery system for Nike. If you enter Nike or Draw site, apply, and win, you can buy shoes at the regular price. The editor also had Nike Mid Jum Red and Dunkrow products, which were available for 120,000 won at the time of winning and went up to 400,000 won, and now they are formed at around 270,000 won. Draw is not everything, and even if you don’t win the draw, you can participate in this investment technology. We can buy shoes as if they are investing in blue-chip stocks for products that already have extra money but are likely to rise further in the future.

In the case of sculpture investment mentioned above, it can be an attractive investment means in that it can be invested in a small amount, but it should be aware of the risks. Prices of artworks and copyrights are volatile in that it is difficult to objectively evaluate the value and that trading volume is not large.

Although the partial investment and resell market are growing, there are many concerns. Since most of the companies that operate the platform are startups, investor protection systems may be insufficient. In the case of some partial investments, it is difficult to distinguish them from P2P and the investment is not guaranteed, so there is a concern that individual investors will take great risks. In addition, since the operator of the partial investment company has only promised to distribute profits by operating assets, there is virtually no official consumer protection system such as the disclosure obligation. Therefore, it is difficult to provide information related to the management method or risk of investment, and investors are likely to misunderstand that it is a safe asset. Also, since the recently emerging partial investment platform often does not own the asset directly, investors could inevitably suffer damage if the company goes bankrupt or the service is suspended.

Now that various financial technology methods have emerged, we, who invest, should not only be buried in financial technology, but also value the income and value earned from work. Investors should take wise financial measures by carefully checking investment product information and being wary of overheating investment.

K-UNIV

Asia Journal 

The term ‘new media’ refers to media that are computational and rely on computers for redistribution. As the technology of mobile devices and telecommunication advances, video content is being optimized for the mobile environment. This led to a fall of legacy media such as TV, and the emergence of various platforms that can broadcast creative content. Among them, in Korea, a lot of entertainment show programs have been successful on YouTube and other mobile platforms. The MZ generation, those who are born after 1980, is especially an active consumer of this new type of video content.

YouTube-based entertainment shows have a shorter video length than TV shows. This is related to the change in the place where content is consumed. Viewers now watch videos on the move or before bed rather than spending a separate time watching content. So it should not be too long. This type of video develops in a fast flow so that viewers can quickly immerse themselves.

The pandemic made people stay home, and it led to an upsurge in entertainment video content. So, now there are more YouTube shows produced in small indie studios or YouTubers. “Nego King” which means the king of negotiation, was a much loved YouTube show in 2020. Most episodes have more than 1 million views, and even some of them are close to 10 million. The companies that appeared on the show often hit the top of real-time search terms, and their websites were flooded with visitors.

The reasons that this content has succeeded come from the characteristics of the MZ generation. The MZ generation shows different characteristics from the older generation. They are more familiar with self-expression, value honesty, and consensus, and prioritize their tastes. As they tend to choose which content they will enjoy according to their values, these contents satisfy their various preferences. As for “Nego King”, the whole content is a paid ad, but the viewers never mind this. Rather, if the CEO seems to care about consumers, they actively buy the company’s products. Therefore, targeting the MZ generation can lead to increased sales and increased brand preference.

In 2019, McKinsey & Co. conducted detailed research of Generation X, Millennials, and Generation Z in six Asia-Pacific countries including Korea. According to the survey, 58 percent of millennials and 70 percent of Gen Zers said that they learned about new brands via video-based social media at least once a month while 46 percent of Gen Xers said they do so. Video influences the MZ generation not only in brand awareness but also in purchase decisions. In Korea, about 30 percent of millennials and 45 percent of Gen Zers responded that video sources are among top 3 influences for brand and product selection while only 15% of Gen Xers did.

For this reason, companies are making great efforts to fascinate the cohort. More and more companies targeting the MZ generation are expected to carry out marketing using this trend. Even the e-commerce industry and the distribution industry are also focusing on producing online shows using their products. They not only improve brand affinity by providing information and fun at the same time but also encourage the purchase of the MZ generation.

The viewers who are the cohort of the MZ generation directly communicate with other viewers or producers using the comment function. In the process of sharing their reactions, new memes or buzzwords are often created. This interactive communication makes the content more enjoyable, and viewers of Generation MZ naturally participate in the process.

Legacy media is trying to follow this new trend, too. MBC, Korea’s major broadcasting station, recently aired a survival show named “Game of Blood”. What’s special about the show is that a famous YouTuber participated in the production. Furthermore, the show was aired not only on TV (MBC) but also on YouTube and OTT platforms. This special collaboration with a YouTube celebrity fascinated those who are bored with typical TV shows.

The success of these various types of entertainment shows encourages the emergence of more creative narratives that break away from the existing narrative structure. Unlike TV shows, YouTube-based shows are less regulated by law. Also, viewers can spread the content further through sharing and reproduction. So, this change not only provides viewers with a variety of options but also guarantees content creators more opportunities to create. A ton of online-originated video shows are being released even at this moment, so Korea’s online entertainment content market is expected to expand further.

K-UNIV Reporter

Hansaem Lee

 On July 1st, newly established insurance company Shinhan Life ran unique advertisements for its first brand campaign. It reached 11 million views in two months after its release on Youtube, receiving an enthusiastic response from the MZ generation. What is noteworthy and surprising is that the one who dances naturally in the advertisements is a virtual influencer, not a real human. Rozy Oh is South Korea’s first virtual influencer created by Sidus Studio X using artificial intelligence (AI) technology and computer graphics. After its true identity came to light, its popularity has soared, exceeding 100k followers on Instagram. A home shopping host Lucy and a musician Rui are also gaining traction.

A Virtual influencer, as its name suggests, refers to a virtual digital people created through AI technology acting as an influencer on Instagram or YouTube. It was created for marketing purposes on social networking services (SNS) and as a substitute for human influencers. It has a real human-like appearance and specific characteristics like name, gender, age, and nationality. For example, Rozy is a 22-year-old woman who likes travel, shopping, diving, and running. Her attractive appearance was created based on the needs and preferences of MZ generations, improving her favorability. Like human influencers, virtual influencers visit existing places, make friends, meet celebrities, and collaborate with brands. They even show trendy dance skills to many people by analyzing new music and popular dances. Sharing personal daily life on your feed, they communicate steadily with followers and have a lot of influence on the MZ generation. Due to its escalating impact, they draw attention to various industries such as games, fashion, and beauty. The virtual influencer is also called a digital celebrity and plays a role in enhancing the image of a company by approaching consumers friendly.

One advantage of virtual influencers is that they can collaborate wherever they are, whenever they want to. It is possible to work in multiple spaces at once and time travel into the past and future. They don’t have to worry about social distancing and the risk of getting infected even in the lockdown situation caused by Covid 19. Since virtual influencers do not age like a real human model and are free from various rumors such as scandals, they can work long as an influencer and model. There is also a possibility of applying to Metaverse that attracts a great deal of the MZ generation’s attention these days. If the virtual influencer is combined with virtual reality (VR), there is an increase in a perceived higher level of realism with various events expanded through the Metaverse.

While the advantages of using virtual influencers are plentiful, there are disadvantages to overcome. With more virtual influencers coming out, it could hog the limelight from the real human influencers. No matter how similar their appearances are, they can be an object of aversion to people. According to the concept, uncanny valley, people tend to feel a sense of anxiety or disgust in response to virtual humans. But this can be resolved by more advanced and sophisticated technology. The real problem is their authenticity. As there is a limit to communication, it is inevitably insufficient to build trust with fans. People also expressed concern about the misuse of technology. Since a deepfake technology is used, it can replace the person in an existing image or video using AI technology. It has the potential to modify people’s memories and attitudes and implant false ones, causing fake news and misleading. To keep up with rapid technological development, we need to figure out a way to respect ethical and moral values at the same time.

For the MZ generation accustomed to using smartphones and communicating the world through them, it is not hard to accept the concept of virtual influencers. It is because it is not much different from interacting with friends through SNS without face-to-face activities. Communication and interaction are essential factors to captivate the MZ generation. Virtual influencers appeal to them with a free spirit, social personality, and unique fashion sense, even strengthening their storytelling and various episodes. They are characterized to actively participate in social issues with their huge interests in environments. It perfectly reflects the characteristic of the MZ generation that pursues individual happiness and experiences and expresses their beliefs by purchasing things with social values or special messages.

As the MZ generation represents the largest group of consumers who exert a strong influence on a digital environment, it is clear that the virtual influencer is a marketing advancement and a new attempt to break the convention. A virtual influencer is already a trend for the MZ generation. As technology advances, its influence will grow and expand to various areas in the future.

Nahyun Lee

K-UNIV Reporter

It has been well over a year since the pandemic began and saying that the world is exhausted is an understatement. Cities all over the world have been going into lockdown and the world was put on halt. With norms no longer being the norms, everyone was forced to adapt to a new lifestyle. So how has the pandemic affected the younger demographic, and how are they handling their pandemic fatigue?

Post secondary education has taken a drastic change during the pandemic. With online lectures being the solution to avoid large gatherings, the students have mixed opinions on this matter. There are those who believe that online learning is negatively impacting the educational quality. They claim that the restricted use of school facilities does not properly reflect on the tuition they pay. With the “partial” education they receive, they are left ill-prepared once graduated.

On the other hand, there are many who support online learning and believe that it will be an integral part of our educational system in the future. Their claim is that the benefits of online classes outweigh the drawbacks. Many see the pandemic as a push to the inevitable online-oriented society that was going to come with or without the pandemic. Of the coming changes, online schools – specifically post secondary schools – is one that will be greatly influenced. Further development in online culture is to be expected in the coming time.

Apart from education, the younger demographic have become restless from the pandemic. For young adults, their 20s are supposed to be a time for exploration and growth. It is a period where they step into the next chapter of their lives which bestows them with infinite possibilities, but the restrictions the pandemic brought discouraged many to move forward. Because of these restrictions and boundaries, many feel trapped and tied down physically and mentally. The excitement of graduating from the decades spent in a learning institution is crushed by the WFM (work from home) culture that was spawned by the lockdown.

While some are discouraged to move on, others took the pandemic as an opportunity. With the seemingly infinite amount of time people had during the lockdown, the restless young adults had to allocate their energy to new ambitions and hobbies. Small “at home businesses” began to pop up left and right. All sorts of creative businesses started popping up on social media such as basketball pottery, picnic catering, home food catering, and more. Whether it was done to pass the time, to make profit, or to be a non-profit, each business shined with youthful creativity that reflected their respective community. In Toronto, the BioBall made its appearance. The BioBall is a handmade sports planter that adds life to the home environment while raising money for a good cause, as all profits are donated to cancer patients.

While some were starting their “small businesses,” others were entering the world of stocks.  It seemed like every other person was learning about stocks and investments. We’ve seen a spike of increase in “stock advisors” found on social media platforms such as Instagram, TikTok, Twitter, and reddit. We’ve heard countless stories of success and failure.

This lockdown has been inescapable as travel has been restricted as well. The phrase, “once COVID is over…,” has been getting louder and louder as people yearn to travel abroad. Whether it is to see family, to work, or just for leisure, young adults all over the world had to put their plans and ambitions on hold.

The past year and few months have been an interesting period of time. As we prepare for the end of the pandemic, the next chapter for these young adults will be even more exciting.

Asia Journal
Cory Yi

Covid 19 outbreak has brought changes in our daily lives. Many things that were natural in the past became unusual. It has been almost hard to travel between countries and to socialize in dense spaces over the past year. Even for students, there is little chance to associate with others. As they have classes online without going to school, it is hard to meet and make new friends. Against this backdrop, the word ‘metaverse’ has drawn attention since early 2021. It is a three-dimensional virtual world without a boundary between reality and virtuality. In the metaverse, all users share their experiences using it in real-time. Even consumption activities such as purchasing their avatars costumes or paying for concerts are carried out just like in the real world. It is not just one type of game.

The metaverse craze is led by Generation MZ, the combination of Millennial Generation and Z Generation. They are familiar with new technology and believe they have a deep understanding of using it. Their desire for sharing their owns with friends led to the metaverse. They recognized it as another kind of space for socialization, not as just the virtual world. They think that the relationships between people in the virtual world are not different from those in the real world.

Zepeto operated by Naver Z is one example of a metaverse service in Korea. In Zepeto, users can create an avatar that looks just like a user, synthesizing it naturally on a picture or virtual background with AR technology. One interesting point is its way of communicating with avatars. Users can change all elements of their character like facial expressions, gestures, and fashion styles as they want. Generation Z gets vicarious pleasure from reflecting the way they want on avatars like idol makeup and luxury clothes. There are also many activities like taking photos, recording videos, dancing and playing games. By interacting with text, voice, and emotions, avatars with individuality can communicate in a virtual world, playing a role as SNS.

There are interesting events going on in the metaverse. Many metaverse services had some partnerships with famous brands and entertainment agencies like SM, YG, JYP, and HYBE. One was a virtual fan meeting of Blackpink in Zepeto. More than 50 million people around the world got signatures and took pictures with Blackpink avatars. People can also wear clothes and accessories of BT21, the BTS character, and visit the BT21 world. It could maximize the immersion and participation of Generation Z based on their characteristics that value bonding. The metaverse acts as a new type of fan platform. There was also a metaverse matriculation ceremony at Soonchunhyang University. The freshmen could participate with their avatars in this ceremony. They listened to speeches and introduced themselves to others like the real ceremony. It is like the continuity across reality and the virtual world.

The plays of Generation MZ in the metaverse doesn’t end here. Now Generation MZ creates and shares new things freely using the metaverse, not just getting the contents. They made new games, fashions, and even drama in the metaverse. The concept of metaverse doesn’t remain as games. For Generation MZ, it became one way of playing and culture.

Nahyun Lee

K-UNIV Reporter