"6 out of 10 People Choose ○○○ as Their Top Lunar New Year Gift... Surpassing Korean Beef and Fruits"

PMi Survey on Lunar New Year Holiday
63.5% of Respondents Prefer Cash or Gift Certificates
Cash and Gift Certificates Also Most Preferred Gifts to Give
Rising Prices Lead to More Consumers Choosing Practical Gifts Under 100,000 Won
Demand for Expensive Gifts Over 1 Million Won Halved Compared to Two Years Ago

Six out of ten consumers chose cash or gift certificates as the most desired gift for this year's Lunar New Year holiday. Due to high inflation, demand for practical gifts under 100,000 won has more than doubled compared to two years ago, replacing expensive gifts over 1 million won.

Seollal Gift Preferences. Provided by PMI

According to a survey conducted on the 23rd by data consulting firm PMi, targeting 3,000 adults aged 20 to 69 nationwide regarding the Lunar New Year holiday, 63.5% of respondents selected cash or gift certificates as the gift they most want to receive this year. Popular holiday gifts such as Korean beef and pork meat gift sets (8.9%), health functional food gift sets like red ginseng and vitamins (6.5%), fruit gift sets (4.8%), coffee and tea gift sets (3.2%), processed food gift sets like canned goods and oils (3.2%), seafood gift sets such as dried yellow corvina and abalone (2.8%), alcoholic beverage gift sets including wine and whiskey (2.7%), traditional food gift sets like Korean sweets and yakgwa (2.4%), and daily necessities gift sets such as shampoo and body wash (1.9%) were all far behind these top choices.

From the gift-giver’s perspective, 44.8% also preferred to give cash or gift certificates. The amount expected to be spent on Lunar New Year gifts this year was highest in the 100,000 to 290,000 won range at 29.3%, followed by under 100,000 won at 27.7%, 300,000 to 490,000 won at 19.7%, 500,000 to 990,000 won at 14.5%, 1,000,000 to 1,490,000 won at 5.8%, and 1,500,000 to 1,990,000 won at 1.6%.

Planned Amount for Seollal Gift Purchase. Provided by PMI

A notable point is that during Chuseok 2023, only 13.9% chose to spend less than 100,000 won on gifts, but this amount has roughly doubled for this year’s Lunar New Year. This is closely related to the fact that most consumers feel the impact of rising prices. In fact, 82.2% of survey respondents said that prices have increased compared to last year. Additionally, 31.2% answered that they want to reduce spending on gift purchases the most among Lunar New Year holiday expenses.

The 100,000 to 290,000 won range, which accounts for the largest share of gift purchase spending, decreased by 6.8 percentage points compared to Chuseok last year (36.1%). Also, the high-priced category of 1,000,000 to 1,490,000 won accounted for 10.4% during Chuseok 2023 but dropped to 5.8% this Lunar New Year, roughly halving. A PMi official explained, "The lower spending on holiday gifts this Lunar New Year compared to previous holidays reflects consumers’ practical consumption patterns that prioritize cost-effectiveness without sacrificing quality." They added, "In the context of high inflation and economic downturn, practical gifts and reasonable spending are increasingly emphasized."

Meanwhile, 44.8% of survey respondents evaluated the designation of the 27th as a temporary holiday as "very appropriate" or "appropriate," showing generally positive reactions. "Neutral" responses accounted for 36.0%, while 19.2% said it was "inappropriate." Regarding holiday schedules, 43.6% said they would only take the temporary holiday on the 27th off, excluding the three days of the Lunar New Year holiday, and 27.8% said they would take both the 27th and the 31st off.