[Voices of the MZ Generation Column] In the Age of Inflation, the 'Jjantech' and 'Pumasi' Economy

[Asia Economy] These days, whenever I make payments at convenience stores, restaurants, or cafes, I make it a point to check for points accumulation and discounts. Since each card company or payment app offers such a wide variety of benefits, paying without a second thought can mean losing out on anywhere from a few hundred to several thousand won. Although the amount per transaction may seem small, saving these amounts over time can add up to several hundred thousand won a year, making it worthwhile to pay attention. On the other hand, my wife doesn’t pay much attention to benefits for each payment but actively uses apps that reward points based on her step count. Sometimes she even boasts about collecting points and redeeming them for gift coupons. Lately, she’s been telling me that SNS group purchases are cheaper than most shopping sites, sharing tips on how to save on household expenses. It seems that this trend of trying to save in daily life is not unique to just our couple.

Recently, with inflation, asset depreciation, and difficulties in employment intensifying, changes are occurring in consumer behavior. During the height of social distancing due to COVID-19, luxury goods consumption and exhibitions surged as a form of 'revenge consumption.' However, nowadays, the trend of saving every penny and accumulating money is spreading again.

'Jjantech' is a compound word combining 'jjandoli' (stingy person) and 'jaetech' (financial technology/investment), reflecting the idea that saving every penny is itself a form of financial management. Drinking convenience store coffee instead of cafe coffee, eating at student cafeterias or workplace cafeterias instead of outside restaurants, and cutting down on essential expenses are all examples of 'jjantech.' In addition, there is a lot of information sharing about carefully checking various payment apps and card benefits to earn a few percent back in points or discounts with every purchase. Some people even take advantage of events where applying for a card grants payback benefits, applying for multiple cards in succession to get refunds on the amounts spent.

Another major trend is the 'gonggu' phenomenon centered around SNS. 'Gonggu' is short for 'gongdong gumae,' meaning group purchase, where consumers gather to buy specific products directly from manufacturers, reducing distribution costs and increasing discounts. Originally, this was a method used by social commerce companies, but recently, these companies have shifted more toward general brokerage sales or direct sales rather than individual group purchases. As a result, social commerce activities are now happening again mainly on SNS platforms like Instagram. There are even Instagram influencers specializing in group purchases.

Of course, it is difficult to say that this frugal spirit only has positive effects on society as a whole. For the economy to circulate, consumption must revive, which leads to increased production. Nevertheless, from an individual perspective, it is true that these are anxious times when people need to save as much as possible while preparing for the future.

On the other hand, perhaps it is especially important in times like these to look out for those around us, much like a community helping each other. If there are items at home that are no longer needed, one way is to check if someone nearby could use them. If you have skills to offer as 'talent donation,' providing small help to those around you is another option. Activities like bartering goods or exchanging talents could also be possible.

Ultimately, the era of jjantech is one where saving money is the primary goal, but it could also be an era where things previously solved with money are resolved through 'people.' In a time when money becomes frightening, people may actually grow closer. As the saying goes, opportunity is crisis; perhaps this period can be seen as a chance to live a 'pumasi' (mutual aid) life. After all, crises of the times are always overcome through the hearts and connections between people.

Jung Ji-woo, Cultural Critic

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