[Reporter’s Notebook] KOSPI 6000 Festivities, 100-Won Wars

The 100-Won Pork Belly War at Major Supermarkets
KOSPI 6000 Era Reveals a Shrinking Middle Segment
A Critical Moment for Policies to Strengthen the Middle Class of Consumers

On the morning of February 26, a long queue formed in front of the shuttered entrance at a major supermarket in downtown Seoul, just over 20 minutes before opening. On this day, as the three leading supermarket chains began selling pork at prices ranging from 880 won to 990 won per 100 grams ahead of "Samsam Day" (March 3, the day to eat samgyeopsal), an "open run"-a rush of customers lining up before opening-unfolded. In front of a sign reading "990 won per 100 grams of pork," consumers busily compared the quality of the meat and tapped away on their mobile phone calculators to check prices. That 100 won-a seemingly small number-is now shaping the direction of household spending.

The KOSPI index surpassed the 6,000-point mark for the first time in history. The rally in large-cap stocks, especially those in the semiconductor sector, pushed the index higher. The "wealth effect" resulting from a booming asset market has also kicked in. As those who feel wealthier due to increased assets in stocks and other investments open their wallets to spend, luxury stores are crowded and department stores are achieving record-breaking results. Judging by the numbers alone, the economy appears to be in a festive mood.

While the wealth effect stimulates spending, it also tends to drive up prices. Increased consumption by asset holders pushes prices higher, and the burden falls even more heavily on households without assets. This is why Rhee Changyong, Governor of the Bank of Korea, pointed out that "rising stock prices are likely to further intensify polarization." If the rewards of a rising index are concentrated in only certain classes, the figure of 6,000 cannot represent the economic reality experienced by all.

It is difficult to conclude that a recovery in the cycle of a particular industry will immediately lead to a rebound in domestic demand, employment, and the business sentiment of the self-employed. The distribution scene-the barometer of the real economy-is already sending different signals. While department stores, driven by luxury goods, are posting record-high earnings, large supermarkets are relying on ultra-low price promotions to attract consumers. This divergence in consumption is not simply a passing trend; it is a sign of an economy where the middle tier is thinning out.

The bigger problem is that this is not merely a difference in consumer trends. The polarization of consumption entrenches gaps in income and assets, weakening the foundation of domestic demand. As the middle-class consumer base collapses, companies are left to survive only between ultra-high-end and ultra-low-end markets, causing the backbone of the economy to become increasingly fragile. This is a structural risk that undermines the sustainability of growth.

KOSPI 6000 is certainly a meaningful milestone. However, that milestone does not guarantee the strength of our economy. The index is simply the sum of several companies, while the economy is the sum of everyday lives. If we become intoxicated with the average and ignore the distribution of consumption, polarization will only deepen. What is needed now is not another record high, but the strength to restore the middle-class consumer base. If policies fail to shore up real income and the foundation of domestic demand-relying instead on optimism from an asset market boom-then 6,000 may go down in history not as a celebration, but as the starting point of a fracture. That is why the 100-won battle now being fought at the checkout counter should not be taken lightly.

This content was produced with the assistance of AI translation services.