Will You Buy a 131 Million Won Whiskey or a 3 Million Won Korean Beef Set? The Reality Behind Booming Chuseok Gift Sales

Retailers See Intensifying Polarization in Gift Set Sales
Department Stores See Booming Sales of Premium Korean Beef and Billion-Won Whiskey
Large Supermarkets: 30,000 Won Coffee Sets Lead the Trend for Cost-Effective Gifts

As high inflation and a prolonged recession continue, the polarization of Chuseok gift purchases at department stores and large supermarkets has become increasingly evident. While department stores are seeing brisk sales of so-called 'billion-won' premium liquors such as 100 million won whiskey and luxury Korean beef sets costing several hundred thousand won, the majority of sales at large supermarkets come from practical gift sets priced around 50,000 won. Analysts say that the trend of polarization between ultra-premium and ultra-affordable, cost-effective products is now reflected in the holiday gift market as well.

As high inflation and prolonged recession continue, a polarization phenomenon in Chuseok gift purchases at department stores and large supermarkets has become evident. While department stores sell whiskey priced at 100 million won, large supermarkets are dominated by cost-effective coffee sets priced around 30,000 won. Getty Images

Retailers See Strong Gift Set Sales...But Consumer Spending Is Polarized

Fruit gift sets are displayed at department stores in downtown Seoul. Yonhap News

According to Yonhap News on September 7, early reservations for this year's Chuseok gift sets have shown strong sales. This is attributed to consumers having more spending power as Chuseok gift reservations began right after summer vacations ended, and to an increase in demand for early gift purchases as many people plan domestic and overseas trips during the extended holiday period, which lasts up to ten days.

Compared to last year, Lotte Department Store saw a 45% increase in Chuseok gift set reservation sales, Shinsegae Department Store recorded an 87% increase, and Hyundai Department Store saw a 48.9% rise. Emart (8%) and Lotte Mart (15%) also experienced sales growth. An industry insider commented, "Early purchases are especially active among corporate and business clients," adding, "However, even as sales increase, the polarization of consumer spending is becoming more pronounced."

Department Stores See Booming Sales of Premium Korean Beef and Whiskey

Citizens are selecting Chuseok gifts at a large supermarket in Seoul. Photo by Yonhap News

Premium gift sets led the sales at department stores. At Shinsegae Department Store, a 370,000 won Korean beef set ranked first in reservations, while Hyundai Department Store's 490,000 won Korean beef set topped its list. Lotte Department Store also saw its 500,000 won Korean beef steak set take the top spot, with all three major department stores reporting the highest sales in Korean beef products.

Demand for ultra-premium gifts continues as well, with Hyundai Department Store's 3 million won 'Number Nine' luxury Korean beef set reaching a 35% reservation rate compared to the available stock. Lotte Department Store has received many inquiries about 'The Glenlivet 55 Years: Eternal Collection' whiskey (priced at 131 million won) and 'Jung Kwan Jang X Kwangjuyo Mokdan Yongmun' (2.39 million won), both of which are expected to sell out during the advance reservation period.

Large Supermarkets See Popularity of 30,000 Won Coffee and Spam Sets

In contrast, 'cost-effective sets' are dominating large supermarkets. At Emart, Chuseok gift set reservations show that sets under 50,000 won account for 83.0% of sales, those between 50,000 and 100,000 won make up 11.0%, and those over 100,000 won comprise 6.0%. At Lotte Mart, sets under 50,000 won account for 35.0%, those between 50,000 and 100,000 won for 30.0%, and those over 100,000 won for 35.0%.

At Emart, Homeplus, and Lotte Mart, the best-selling gift was the 'Maxim Coffee Set' priced around 30,000 won. CJ Spam sets in the 30,000 won range and Jung Kwan Jang Red Ginseng products in the 20,000 won and 60,000 won ranges were also among the top sellers. Mixed gift sets of canned goods and cooking oil from Dongwon and Sajo also ranked high. Analysts say this demonstrates that even holiday gifts are increasingly limited to essential consumer goods.

"Polarization Is Clear...Mid-Range Price Sets Are Hard to Find"

The polarization of Chuseok gifts is not a new phenomenon. However, this trend has become even more pronounced this year. Experts point out that "while the focus on cost-effectiveness in Chuseok gift sets is intensifying due to high inflation, there is also a surge in demand for premium gift sets," adding, "it has become difficult to find gift sets in the mid-price range, highlighting the clear polarization in the market."