"20 Billion Won Lotto Jackpot Is Not Enough"... Public Wants '5.2 Billion Won' as Appropriate Amount

Expectations for the “appropriate” jackpot double in one year
Calls for higher payouts spark discussion on system reform

Nearly half of the public is satisfied with the current first prize payout for the Lotto, which stands at around 2 billion won, but a significant portion still feels it is insufficient. For those who are dissatisfied, the “appropriate amount” for the jackpot averages 5.2 billion won, with analysts attributing the increased expectations to rising housing prices in the greater Seoul area.

Citizens lining up to purchase lottery tickets on New Year's Day. Photo by Yonhap News Agency

According to the government on January 22, a survey conducted online last year by the Korea Institute of Public Finance targeting 5,000 men and women aged 19 to 64 found that 45.3% were “satisfied” with the current first prize payout of approximately 2 billion won. In contrast, 32.7% responded that they were “dissatisfied.”

Average “appropriate prize” jumps to 5.2 billion won... Expectations surge in one year

Among those dissatisfied with the prize amount, 91.7% said that the payout should be increased. The average “appropriate” first prize amount they cited was 5.22 billion won, up by 2.33 billion won from the previous year’s survey (2.89 billion won).

By prize range, “over 3 billion won” was the most common response at 65.6%, followed by “2 billion to less than 3 billion won” at 26.8%, and “1 billion to less than 2 billion won” at 4.0%. Notably, the proportion of respondents who considered “over 3 billion won” to be appropriate more than doubled compared to a year ago.

The institute pointed to rising housing prices in Seoul and the greater metropolitan area as the background for this shift. In fact, if the Lotto first prize were about 5.2 billion won, the actual amount received after taxes would be around 3.5 billion won, which is comparable to the price of an 84-square-meter apartment in the Gangnam, Seocho, or Songpa districts of Seoul.

Odds adjustment vs. price increase... Different views on how to raise the jackpot

Regarding how to increase the first prize payout, opinions were nearly evenly split between lowering the odds of winning the top prize (50.3%) and raising the price of the lottery ticket (49.7%).

Among respondents who had purchased Lotto tickets in the past year, 60.3% said they would maintain their current spending even if the jackpot increased, while 27.1% said they would increase their spending. In contrast, among those who had not purchased Lotto tickets, 30.2% said they would consider buying tickets if the prize amount were raised.

The report stated, “Overall satisfaction with the Lotto jackpot is relatively high, so urgent institutional reform may not be necessary,” but added, “Demands for increasing the prize should also be considered.” It continued, “Raising the jackpot could have a positive impact on revitalizing the lottery market by encouraging existing buyers to maintain or increase their purchases, as well as attracting new participants.”

The Korea Institute of Public Finance submitted a report titled “A Study on Improving the Lottery Issuance and Sales System in Response to Changes in Perceptions and Behaviors of Lottery Consumers” containing these findings to the Ministry of Economy and Finance last year.