[Ordinary People Report] 4 out of 10 Households Are Rental Tribe... Spend 38,000 KRW Monthly

Shinhan Bank's '2020 Ordinary People's Financial Life Report'
Higher Usage Rates with More Household Members... Water Purifiers, Air Purifiers, Bidets in Order
25.4% Increase in Regular Delivery Users

[Asia Economy Reporter Haeyoung Kwon] More than 4 out of 10 households in Korea are using rental services, where they borrow instead of buying. The monthly rental service fee was 38,000 KRW.

According to the '2020 Ordinary People's Financial Life Report' released by Shinhan Bank on the 27th, the rate of households using rental services was 42.6%. Among households with three or more members, 48.8% used rental services, while 2-person households were at 35.8%, and single-person households at 23.6%, showing higher usage rates with more household members.

The monthly payment fee was in the mid-to-high 30,000 KRW range, with little cost difference depending on the number of household members. The average monthly fee was calculated at 38,000 KRW. The main reason for using rental services was management and service, accounting for 50.6% of responses. The rental items were mainly water purifiers, air purifiers, and bidets, likely due to the advantage of receiving product management services.

Notably, single-person households showed higher usage rates of beds, dryers, and microwave ovens/ovens at 7.5% to 9.5%, all higher than households with two or more members. This is analyzed as a choice of rental over ownership due to relatively lower housing stability such as monthly rent and limited economic capacity. The usage rate of pet-related products and toys was also 6.5%, double that of households with two or more members (3.4%).

58% of respondents said they would newly use or additionally use rental services within six months, 15.4 percentage points higher than the current usage rate of 42.6%. They also responded that the monthly rental fee per household could increase up to 61,000 KRW.

A Shinhan Bank official said, "Existing users showed demand for various products such as beds and dryers," and predicted, "Consumption patterns will change to a method where households no longer own furniture and home appliances but use and manage desired products for the necessary period."

The number of users of subscription delivery services, which deliver desired products on desired dates, accounted for 25.4% of all economically active people. The average monthly fee was 56,000 KRW. The usage rate was highest among young people in their 20s and 30s at 29.9%. People in their 40s spent the most on subscription delivery services, averaging 60,000 KRW per month. The biggest reason for using delivery services was convenience, as they did not have to worry about purchasing timing or buying whenever needed.

People aged 40 and above had higher usage rates of traditional subscription services such as dairy products, beverages, newspapers, and magazines, while those in their 20s and 30s used cosmetics, toiletries, coffee and alcohol, flowers and paintings, and hobby items relatively more, showing more active consumption for diverse and new experiences.

41.9% of respondents expressed an intention to expand subscription delivery services within six months, and the monthly fee could increase from the current 56,000 KRW to 91,000 KRW.

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