The Only Hope Is the Lottery... Bought 3.5 Billion Won Worth More Last Month

Lottery Sales Increase More During Economic Downturn
Instant Lottery Ticket Sales Surge Significantly

[Asia Economy Sejong=Reporter Joo Sang-don] In January this year, lottery sales increased by 3.5 billion KRW compared to the same month last year. This is interpreted as a result of more people hoping to win the lottery as household finances have become tight due to soaring loan interest rates and heating costs, despite stagnant wages.

According to the government on the 14th, total lottery sales last month amounted to 564.9 billion KRW, an increase of 3.5 billion KRW (0.6%) compared to the same period last year. Sales also surged by 47.7 billion KRW (9.2%) compared to January 2021 (517.2 billion KRW).

Instant scratch-off tickets, which can be scratched with coins to immediately check for winnings, led the increase in sales. Instant lottery sales were 49 billion KRW in January last year but rose to 61.2 billion KRW this January, an increase of 12.2 billion KRW (24.9%). Electronic lotteries sold online, such as Powerball and Triple Luck, also saw sales rise from 9.4 billion KRW to 11 billion KRW during the same period, a 16.3% (1.6 billion KRW) increase.

Lotto sales, which account for more than 80% of total lottery sales, decreased by 2.1% from 476.6 billion KRW in January last year to 466.6 billion KRW this January. Pension lottery sales also declined by 1.2%, from 26.4 billion KRW to 26.1 billion KRW during the same period.

The overall increase in lottery sales has accelerated since the spread of COVID-19. Sales were around 4.2 trillion KRW in 2017, 4.4 trillion KRW in 2018, and 4.8 trillion KRW in 2019, but surged to 5.4 trillion KRW in 2020 when COVID-19 spread. This rapid growth continued, with sales reaching 6.4292 trillion KRW last year, 453.7 billion KRW (7.6%) more than in 2021 (5.9753 trillion KRW).

The sharp rise in lottery sales since COVID-19 reflects the challenging economic situation.

First, since May last year, the consumer price inflation rate has exceeded 5% year-on-year, causing prices to rise rapidly. Although inflation slowed after reaching 6.3% in July last year, it still recorded a 5.2% increase in January this year, maintaining a 5% range. Public utility fees have risen sharply. In particular, the import price of liquefied natural gas (LNG), linked to city gas rates, has skyrocketed, causing an unprecedented 'heating cost bomb' crisis.

The increased interest burden due to rate hikes is also worsening household finances. The base interest rate was raised seven consecutive times by the Bank of Korea from April last year to last month, reaching 3.5%.

While expenses have increased, income remains stagnant. According to the Ministry of Employment and Labor's '2022 December Business Labor Force Survey,' the real wages of businesses with one or more employees, adjusted for 5.1% inflation from January to November last year, were 3.549 million KRW, similar to the previous year.

Mr. Park, in his 30s living in Seoul, said, "After being hit by the heating cost bomb, my mortgage interest rate was recently recalculated and nearly doubled. Since there is nothing left to cut back on, I have been buying not only Lotto but also instant lottery tickets every week since the beginning of this year."

Under a flashy banner reading "First Prize Winner Number 11," a delivery worker is so engrossed in the lottery ticket that he forgets to take off his helmet. Photo by Mun Ho-nam munonam@

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