"Planning to Find What I Want to Do After Early Retirement" Spread of 'Fire Jok'
Concerns Over Economic Slowdown Due to 'Extreme Frugality' Tendencies
"Fire Jok Emerges Amid Economic Recession and Future Anxiety"
Kim Da-hyun, a member of the FIRE movement who retired at the age of 40 and is now realizing her dreams. / Photo by tvN, screenshot from the broadcast of 'You Quiz on the Block'
[Asia Economy Reporter Kang Joohee] Recently, there has been growing interest in the so-called 'FIRE tribe,' a group that drastically reduces consumption to retire early, especially among young people. The term FIRE tribe is a neologism derived from the initials of 'financial independence, retire early,' and its members aim to achieve financial independence and retire relatively early, in their late 30s or at the latest in their early 40s, earlier than the typical retirement age.
On the tvN variety show 'You Quiz on the Block,' which aired on the 29th of last month, Kim Dahyun, a member of the FIRE tribe who retired at 40 and is now pursuing her dreams, appeared. Kim, who originally worked as a team leader at an IT company for 16 years, retired last year and has been unemployed for a year.
Kim revealed that while working, she repeatedly spent most of her day on work, which led to stress-induced enteritis requiring emergency room visits, and she also experienced symptoms of anxiety disorder. At some point, she realized that the sense of fulfillment she sought at work should come from what she loves.
She said, "At one time, I enjoyed working cooperatively with others and felt a sense of accomplishment. However, the company is always a place with pressure to achieve goals. Before quitting, I experienced anxiety disorder symptoms to the point where I could hardly breathe." She added, "On the day I was taken to the emergency room, my husband said to me, 'Why do you work until you get sick?' That moment made me realize something."
Kim decided to retire for the first time at 35 and started saving retirement funds with her husband from then on. Their monthly living expenses were 2.5 million won, plus 3 million won for taxes, totaling 33 million won needed annually. They calculated that they would need 400 million won in total until her husband starts receiving a pension in 12 years. Adding 100 million won for travel expenses, they set a goal of 500 million won.
Kim said, "When I was working at the company, I had so many dreams where I messed up work because of my mistakes." She added, "Now, I wake up in the morning, leisurely drink coffee, take walks, and spend my afternoons doing things I want or writing."
Commuters are walking on their way to work at Sejong-daero Intersection in Gwanghwamun, Seoul. Photo by Yonhap News.
Recently, the number of office workers dreaming of becoming part of the FIRE tribe like Kim is increasing. In a survey conducted in March by JobKorea and Albamon targeting 1,117 adults in their 20s and 30s, two out of five respondents were preparing to become part of the FIRE tribe. When asked, "Do you voluntarily intend to become part of the FIRE tribe?" more than half, 57.0%, answered "Yes." Also, when asked if they are currently preparing to become part of the FIRE tribe, 41.0% said "Yes."
The average asset target for early retirement was 430 million won, and the average desired early retirement age was 39. The most common investment method respondents used to accumulate assets was "stock investment" at 50.7%, followed by "spending as little money as possible" (35.8%) and "savings and deposits" (30.1%).
When asked which expenses they are currently cutting the most to become part of the FIRE tribe (multiple responses allowed), "eating out" ranked first at 55.9%. This was followed by "clothing purchases" (46.5%), "drinking activities" (45.0%), "cultural activities" (32.5%), "hobbies" (23.1%), and "phone and internet communication costs" (18.0%).
Kim, a 35-year-old office worker preparing to become part of the FIRE tribe, said, "I keep a household ledger and gradually reduce wasteful spending, avoiding unnecessary consumption while saving money." She added, "I have to give up things I want right now, but I think of it as investing now to do what I really want to do after retirement."
However, there are also negative views about the FIRE tribe. There are concerns that early retirement of people in their 30s and 40s, who are the most economically active, will reduce consumption and ultimately negatively affect economic revitalization.
In Korea, warnings have been raised that 'super savers,' people with extreme saving tendencies like the FIRE tribe, could threaten economic recovery. At the 'Price Stability Target Operation Status Review Briefing' held in June, Lee Ju-yeol, Governor of the Bank of Korea, said, "The number of super savers with extreme risk-averse tendencies is increasing." He expressed concern, saying, "While the financial soundness of these economic agents may improve, the overall economy may experience slower recovery in consumption and investment, which are key pillars of growth, and this could act as a factor lowering prices again."
On the other hand, there are opinions that the overall economic contraction caused by the FIRE tribe will not be significant. Kim Taegi, a professor of economics at Dankook University, said, "The FIRE tribe emerged due to increased anxiety about the future caused by prolonged economic recession and unstable employment, and this is a characteristic of today's younger generation, different from the older generation. However, since not all young people have such tendencies, I believe the impact on the overall economy will not be significant."
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