Despite COVID-19, Lottery Sales Hit Record High... People Closed Wallets to Buy 'Hope'

Last Year's Lottery Sales Revenue Increased by About 10% Compared to the Previous Year
Lottery Craze Continues Despite Worst Unemployment Since the Foreign Exchange Crisis
"A Refuge to Endure an Uncertain Life," "It's Okay If It's Just Entertainment"
8 out of 10 Citizens Have a 'Positive' View of the Lottery
Experts Say "Young Generation Sees Inequality as Serious"
"If Recession and Employment Difficulties Persist, People Will Rely on Luck"

Despite the economic downturn caused by the COVID-19 pandemic, lottery ticket purchases by citizens have increased. The photo is unrelated to specific expressions in the article. / Photo by Yonhap News

[Asia Economy Reporter Lim Ju-hyung] Despite the domestic economy freezing last year due to the spread of COVID-19, household lottery spending actually increased. Citizens who had closed their wallets due to reduced income ended up paying more for the 'hope' of a windfall. Experts pointed out that factors such as economic recession and income inequality may lead people to rely on 'luck-based' activities like lotteries and gambling.

◆Lottery craze continues despite economic chill

According to the '2020 Lottery and Lottery Fund Information Disclosure' data released by the Ministry of Economy and Finance's Lottery Commission, last year's lottery fund revenue totaled 6.5349 trillion KRW. Of this, 5.4762 trillion KRW came from lottery sales revenue, marking about a 10% increase compared to the previous year (2019). This is the first time that revenue generated from lottery sales in Korea has exceeded 5 trillion KRW.

The average household lottery expenditure naturally increased as well. Last year, households spent an average of 590 KRW per month on lottery tickets, a 7.2% increase compared to 550 KRW in 2019.

The lottery craze is expected to continue this year. In the second quarter (April to June), the average monthly spending was 665 KRW, and in the third quarter (July to September), it rose steadily to 844 KRW.

◆Lottery consumption notably increases among low-income groups

Citizens' lottery purchases coincided with the economic shock caused by the COVID-19 pandemic. According to employment trends from Statistics Korea, the number of employed people decreased by 218,000 last year compared to the previous year, marking the largest decline since the 1998 financial crisis.

The total number of employed people last year, when the COVID-19 infection situation was severe, decreased by more than 210,000 compared to the previous year. The photo shows citizens gathered at the unemployment benefits briefing session. / Photo by Yonhap News

With many citizens losing jobs, households tightened their wallets. Last year, the average monthly household consumption expenditure was 2.4 million KRW, a 2.3% decrease from the previous year. Real consumption expenditure, adjusted for inflation, dropped by 2.8%. Despite this, lottery purchases went against the consumption trend.

As income became unstable and more households faced financial hardship, concerns arose that many viewed the chance of a windfall through lotteries as an 'escape route.'

In fact, lottery consumption among the lowest income group, the first quintile households (bottom 20% income), showed a remarkable increase. In the first quarter of this year (January to March), their average monthly lottery spending was 336 KRW, a 46.7% rise compared to 229 KRW during the same period last year. This contrasts with the 9.4% increase in lottery spending among the middle-class third quintile households.

◆"We need this kind of joy to endure an uncertain life" Citizens buy lottery tickets for comfort

Citizens unanimously said they buy lottery tickets to give themselves 'comfort.' A man in his 30s, Mr. A, who recently quit the food service industry and is attending a vocational school to switch to interior design, said, "Everyone knows the chances of winning are almost zero. Buying lottery tickets is like deliberately deceiving yourself." He added, "You need this kind of joy to endure an uncertain life."

Citizens purchasing lottery tickets. The photo is not related to any specific expression in the article. / Photo by Yonhap News

Mr. B, a worker in his 20s, said, "Waiting for the weekly Lotto numbers and imagining what it would be like if I won is thrilling," adding, "I think it's fine as long as it's enjoyed as light entertainment."

A significant number of citizens have a positive perception of buying lottery tickets. A recent survey conducted by the part-time job site 'AlbaCheonguk' with 1,049 respondents found that as many as 85.5% had a 'positive' view of lotteries.

The reasons they enjoy buying lottery tickets were 'it gives hope for a life turnaround' (85.5%) and 'it provides fun in daily life' (59.0%), in that order.

Experts pointed out that citizens' anxiety about the future could lead to the lottery craze.

Professor Kim Tae-gi of Dankook University's Department of Economics said, "If employment difficulties caused by economic recession continue, people will inevitably turn to high-risk investments like lotteries and stocks."

He added, "Unlike their parents' generation, today's young people see worsening inequality in income, opportunities, and assets, and believe this trend is unlikely to improve. Therefore, they rely on 'one-shot' money-making methods like lotteries."

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