"Impulse Buying Due to Stress" Aftermath of COVID-19... Growing 'Hwatgim Expenses'

9 out of 10 Office Workers Spend on 'Hwatgim Expenses'
1 in 3 Says "Spending Increased Since COVID-19 Spread"
Experts Say "Training Needed to Improve Spending Control Skills"

Photo by Yonhap News

[Asia Economy Reporter Kim Ga-yeon] #University student A (24) impulsively purchased expensive wireless headphones and a turntable last week. Recently, A had been under significant stress due to conflicts with family members while refraining from going out, but could not find a proper way to relieve it. A said, "I used to relieve stress by drinking with friends, but since I can't go out, spending money is the only way to relieve stress," adding, "I already had some savings, so I thought, 'Why not live a little?' and made the purchase."

As the COVID-19 pandemic continues, more office workers are spending 'Hwatgim costs' due to stress. The term Hwatgim cost literally means 'expenses incurred in a fit of anger' and refers to impulsive purchases made to relieve stress.

With the government urging strict social distancing, citizens have been canceling gatherings and appointments, spending most of their daily lives at home. As a result, there are few ways to relieve stress, naturally leading to impulsive purchases and other consumption behaviors.

Experts analyzed that psychological factors such as stress can influence consumption behavior, and if this behavior is repeated, the unit price of consumption also tends to increase.

Nine out of ten office workers said they spend additional costs in a fit of anger. According to Shinhan Bank's '2019 Ordinary People's Financial Life Report' last year, 85.5% of office workers answered that they make impulsive purchases to relieve stress.

Respondents reported making impulsive purchases more than twice a month on average, spending about 86,000 KRW per purchase. On average, this amounts to over 200,000 KRW monthly spent as Hwatgim costs.

Photo by Yonhap News

Meanwhile, recently, citizens complaining of stress due to the impact of COVID-19 are also increasing their Hwatgim expenditures.

One in three office workers said their consumption increased after the COVID-19 outbreak. According to the flea market job portal's 'Changes in Consumption Patterns Due to COVID-19' survey on the 4th, 28.6% of respondents answered that their consumption increased after the spread of COVID-19.

About 80% of respondents said they intend to change their consumption habits due to COVID-19. Their consumption plans included 'making planned purchases even when consuming' (39.7%), 'reducing consumption and increasing savings' (32.4%), and 'only making necessary purchases' (20.9%).

Additionally, according to the financial sector, online credit card usage in March reached 10.0316 trillion KRW, a 22.3% surge compared to the previous year. Notably, the online portion of personal credit card usage increased by about 5 percentage points from last year to 24.6%.

Previously, Hwatgim costs were relatively small amounts spent on clothing or hobby items, but cases of spending on high-priced PC peripherals or luxury goods have also become common.

B (29), an office worker who has been working from home for a month, recently impulsively purchased a tablet PC. B said, "Although I have a laptop, it takes time to handle all work on it," adding, "It became frustrating as this repeated, so I just bought one."

B added, "After calming down, I thought maybe I shouldn't have bought it and felt some regret, but since I can use it for watching Netflix or hobbies, I decided to consider it an investment in myself."

Experts advised that people should train their consumption control abilities by making concrete plans to suppress impulsive spending.

Professor Kwak Geum-ju of Seoul National University's Department of Psychology explained, "Although there are individual differences, psychological factors can influence consumption behavior. As time spent at home increases, people naturally access online platforms more. Those who relieve stress through consumption tend to shop online more frequently."

Professor Kwak emphasized, "Initially, consumption may be small, but other or more expensive items may seem better, and as this continues, the unit price of consumption can also rise. If this situation persists, it can lead to addiction, so caution is necessary."

She continued, "When addiction worsens, individuals may not be aware of it themselves. If friends or family point it out, it is important to create a consumption plan focusing on budget and necessity and to train self-control abilities. If the situation does not improve, professional counseling may be needed," she suggested.

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