Koreans Rank 4th Worldwide in 'Conspicuous Consumption Spending'... "Due to Economic Stress"

South Korea's Average Monthly Conspicuous Consumption Amount $59... 4th Among 20 Countries
Global Inflation Concern Index 72%, South Korea Slightly Rises to 65%
"Conspicuous Consumption Continues Amid Economic Stress"

Deloitte Korea Group announced the ‘Deloitte Consumer Signals’ index analyzing consumer sentiment across 20 countries on the 4th. This index analyzed consumer inflation concerns, financial well-being, and spending intentions, showing that consumers are cutting living expenses while continuing to spend for self-satisfaction amid the recent economic situation.

According to Deloitte, the global consumer inflation concern index was 72% in May 2024, slightly down from the previous month. The United States saw a significant drop from 79.9% to 73%, while South Korea experienced a slight increase from 64.1% to 65%. The consumer financial well-being index also showed South Korea at 90.6, lower than the United States’ 98.4, indicating that Korean consumers feel greater financial difficulties.

Korean consumers are attempting to reduce living expenses but continue conspicuous consumption in food and beverage sectors such as premium alcoholic beverages. South Korea’s average monthly conspicuous spending was $59 (approximately 80,000 KRW), ranking 4th among the 20 countries globally. This is mainly driven by spending for emotional comfort, practicality, and hobbies.

Kim Taehwan, Deloitte Consumer Sector Leader, emphasized, “Consumers continue conspicuous consumption despite economic stress,” adding, “It is essential to understand consumer sentiment through this index and develop strategies accordingly.”