"Even Dust Must Be Gathered"... 2030 Generation Choosing 'Jjantech' [Heo Midam's Youth Report]

Prolonged Economic Recession Due to COVID-19... 'Jjantech' Gains Popularity
4 out of 10 Adults Say "They Do App Tech"
Experts: "Economically Struggling 2030 Generation Chooses 'Jjantech' Over 'Yolo'"

A citizen is looking at a mobile phone. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

Editor's NoteHow is your youth remembered? From teenagers to college students and office workers, we deliver the joys and sorrows, worries and laughter unique to 'youth.'

[Asia Economy Reporter Heo Midam] "'YOLO' is a thing of the past.", "Even saving a little bit helps you escape being broke."

As the economic downturn caused by the COVID-19 pandemic continues, young people’s interest in 'Jjantech' is increasing. 'Jjantech' is a compound word combining 'jjada,' meaning stingy, and 'jaetech' (financial technology), referring to the practice of minimizing expenses through various methods while saving part of the income to accumulate a lump sum. In particular, some young people are focusing on 'Apptech' (application + financial technology), one of the methods of Jjantech. Experts analyze that young people have shifted from valuing present happiness with 'YOLO' to preparing for future uncertainties.

Office worker Kim (29) has recently been trying to minimize unnecessary spending. Kim said, "I used to buy luxury bags or clothes as gifts for myself about four times a year. But after feeling that even my workplace was not safe due to COVID-19, I thought I should save money."

He added, "Originally, I lived by the motto 'live for today' and bought whatever I wanted. But going through the COVID-19 situation made me realize the importance of preparing for the future."

Meanwhile, interest in Jjantech among young people has been found to be high. According to a survey by Trend Monitor of 1,000 male and female office workers nationwide on their interest in Jjantech, 72.3% of all respondents agreed that "there seem to be more people around me earning small pocket money through Jjantech." By age group, the interest was highest among the 20s and 30s: 76.8% for those in their 20s, 74.8% for those in their 30s, 69.2% for those in their 40s, and 68.4% for those in their 50s.

Given this situation, 'Apptech,' one of the Jjantech methods, is also gaining attention. Apptech refers to generating rewards by using smartphone apps to watch short advertisements, answer quizzes, and other various methods.

The amount of money that can be collected through such 'reward-type' apps is actually close to pocket change. For example, in walking reward apps, you must walk 100 steps to earn 1 won, and you can collect up to 100 won per day. Other apps that give points for watching ads when unlocking the phone offer only 1 to 5 points.

University student Jung (25), who uses a walking reward app, said, "I take a walk with my dog once a day, and I installed the app because I can earn money while walking." He added, "Besides walking, the app gives points for answering quizzes. Although it’s a small amount, collecting points is quite fun." He also said, "If you keep using the app, you can quickly accumulate enough money to buy a coffee."

About 4 out of 10 people earn income using such Apptech. In a previous Embrain survey, 39.2% of respondents said they use Apptech. The usage rate was higher among younger generations (46.4% in their 20s, 50% in their 30s, 35.2% in their 40s, and 25.2% in their 50s).

At a job fair, young people seeking employment are receiving job counseling. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

The reason young people show interest in Jjantech, including Apptech, seems related to job losses and livelihood insecurity caused by the COVID-19 pandemic.

According to the 'June Employment Trends' released by Statistics Korea on the 14th, the number of discouraged job seekers reached 583,000, an increase of 46,000 compared to the same month last year when the impact of COVID-19 was severe. Discouraged job seekers refer to those who are part of the non-economic active population, wish to work and are able to work, but have not sought jobs due to labor market reasons, and have had job-seeking experience within the past year. This is the largest number since the related statistics criteria were changed in 2014.

Experts analyze that employment difficulties and economic downturn have influenced young people’s consumption tendencies. Professor Kwak Geumju of Seoul National University’s Department of Psychology said, "Young people have various consumption patterns. Some enjoy spending, while others try to save. Recently, due to worsening employment difficulties caused by COVID-19, economically struggling people in their 20s and 30s have started to save money."

She added, "Of course, there are still those who think 'spend first and worry later,' like the YOLO group, but because of economic difficulties, many of them regret their spending afterward."