Despite High Prices... 85% of Consumers "Will Not Reduce Chuseok Gifts"

Despite concerns about high inflation and an economic downturn, a survey revealed that consumers plan to give the same or even more Chuseok gifts compared to last year. The business community urged retailers to reduce consumers' financial burdens by expanding discounts and free shipping benefits.

Citizens are shopping at the Nonghyup Distribution Hanaro Mart Yangjae Branch in Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

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The Korea Chamber of Commerce and Industry (KCCI) announced the results of a 'Chuseok Gift Purchase Intention' survey conducted on 1,000 consumers aged 20 and older nationwide on the 3rd. According to the survey, 56.2% of respondents said they would spend a similar amount as the previous year, while 29.1% said they planned to increase their spending.

Regarding the impact of the revised Kim Young-ran Act on Chuseok gift consumption, more respondents answered 'positive' (29.2%) than 'negative' (16.7%). On the 19th of last month, the government announced that during this year's Chuseok period, the gift amount limit for agricultural and marine products and processed agricultural and marine products would be exceptionally raised from 150,000 KRW to 300,000 KRW.

The most preferred Chuseok gift across all age groups was 'fruit' (43.8%). This was followed by health functional foods (32.4%), meat (30.5%), processed foods (22.2%), seafood (12.5%), and daily necessities (12.1%).

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Professor Ok Kyung-young of the Department of Consumer Economics at Sookmyung Women's University explained, "Fruit is a common item on the traditional Chuseok ancestral rites table. It is highly versatile and of the best quality in autumn, the harvest season, making it a popular Chuseok gift every year."

The second most preferred items varied by generation. Those in their 20s (38.7%) and 30s (43.0%) preferred 'meat.' People in their 40s (36.8%), 50s (36.0%), and 60s (33.3%) chose health functional foods as their second preference.

Compared to other age groups, 'processed foods' had a higher response rate among those in their 40s (26.0%), 'seafood' among those in their 20s (16.0%), and 'daily necessities' among those in their 50s (16.4%). Notably, 'alcohol' (20.7%) was the third most preferred item among people in their 20s.

The most important criterion when purchasing Chuseok gifts was 'cost-effectiveness (performance relative to price).' When asked about the criteria for selecting gift sets, 'cost-effectiveness (68.2%)' was ranked first across all generations.

The preference for cost-effectiveness became more pronounced with age. The response rate was higher among those in their 50s (72.8%) and 60s and older (78.0%) compared to those in their 20s (51.3%).

The second selection criteria differed by generation. People in their 20s and 30s (44.7%, 40.5%) valued luxury, while those in their 40s to 60s prioritized the recipient's taste (49.6%, 51.2%, 53.3%) and health factors (41.2%, 47.6%, 57.3%).

When asked about the channels for purchasing Chuseok gift sets, 58.1% of consumers responded 'large discount stores.' This was followed by online shopping (40.8%), department stores (30.5%), and mobile gift services (12.5%). Traditional markets accounted for only 3.5%.

The most common gift recipients were parents (76%). This was followed by close acquaintances such as friends or neighbors (47.6%), coworkers or supervisors (18.4%), and children or teachers (7.7%).

The majority of respondents (40.2%) planned to purchase 1 to 2 gift sets. This was followed by 3 to 4 sets (36%) and 5 or more sets (23.8%). The purchase amount per gift set was mostly under 50,000 KRW (55.4%), followed by 60,000 to 90,000 KRW (23.3%) and over 100,000 KRW (21.3%).

Jang Geun-moo, Director of the Distribution and Logistics Promotion Institute at KCCI, said, "During a period of weakened consumer sentiment, retailers need to make efforts to reduce consumers' holiday expenses by expanding discounts and free shipping benefits."

Meanwhile, to revitalize traditional markets, the KCCI sent a letter on the 27th of last month to 73 chambers of commerce nationwide encouraging the purchase of goods through traditional markets and the purchase and use of Onnuri gift certificates.

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