{"id":2205415,"date":"2024-06-10T14:25:42","date_gmt":"2024-06-10T05:25:42","guid":{"rendered":"https:\/\/koreapro.org\/?p=2205415"},"modified":"2024-06-11T16:45:56","modified_gmt":"2024-06-11T07:45:56","slug":"distorted-wealth-perceptions-make-young-south-koreans-feel-poorer-than-they-are","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/06\/distorted-wealth-perceptions-make-young-south-koreans-feel-poorer-than-they-are\/","title":{"rendered":"Distorted wealth perceptions make young South Koreans feel poorer than they are"},"content":{"rendered":"

A growing number of South Koreans perceive themselves as worse off than they are, driven by a phenomenon known as \u201c<\/span>inflating criteria for average<\/span><\/a>.\u201d This trend, where the lifestyles of the top 10% are conflated with the social norm, creates immense pressure on individuals to emulate unrealistic standards, leading to widespread feelings of relative deprivation and dissatisfaction.<\/span><\/p>\n

The consequences of this distorted perception are far-reaching, contributing to various social issues such as declining marriage and birth rates in the country.<\/span><\/p>\n

A 2024 report by the <\/span>Korea Development Institute<\/span><\/a> (KDI) reveals that South Korea\u2019s middle class, defined as households with incomes between 75% and 200% of the national median income, has expanded in recent years. However, nearly half of the middle class identifies as working class, according to a separate report by <\/span>NH Investment and Securities<\/span><\/a>.<\/span><\/p>\n

The KDI report indicates that individuals earning an upper-class income (at least $5,300 per month) who do not own a home in Gangnam, an affluent district in Korea, may identify as middle class or even working class. This suggests that the location of one\u2019s residence, rather than homeownership itself, is a significant psychological factor in determining perceived socioeconomic status.<\/span><\/p>\n

Numerous local media reports and online communities have highlighted this trend in which young South Koreans perceive the average life to consist of having a degree from a Seoul-based college, owning high-end fashion items, being able to vacation abroad and owning a home in Seoul, among other factors.<\/span><\/p>\n

\u201cMany Koreans conflate the lifestyle of society\u2019s top 10% with the social norm, resulting in feelings of relative deprivation because most middle-class earners cannot afford such a lifestyle,\u201d Lee Eun-hee, a professor of consumer science at Inha University, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

\"\"

A captured image from a vlog titled \u201cParis Fashion Week vlog\u201d by Jennie, a member of Blackpink | Image: Jennie via YouTube<\/a><\/em><\/p><\/div>\n

UNREALISTIC EXPECTATIONS<\/b><\/p>\n

South Korean celebrities <\/span>contribute<\/span><\/a> to the distorted perception of what constitutes an average lifestyle, with their flamboyant lifestyles often setting unrealistic benchmarks for the general public. Reality TV shows, such as \u201cI Live Alone,\u201d have gained immense popularity in recent years with their depictions of celebrities\u2019 everyday lives.<\/span><\/p>\n

\u201cI know that such reality shows are scripted, but I still can\u2019t help but feel like my life has been a massive underachievement when I watch them,\u201d You Seo-young, a Seoul-based college student who identifies as working class, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

Lee of Inha University also noted that South Korean celebrities have increased their visibility by regularly posting on social media. The rising global popularity of K-pop stars has further amplified their influence, as many Korean celebrities serve as <\/span>global brand ambassadors<\/span><\/a> for designer labels.<\/span><\/p>\n

For instance, every member of NewJeans, a popular South Korean K-pop group, is sponsored by renowned fashion brands such as Burberry and Dior. As a result, images of these celebrities adorned in luxury items flood social media, fueling young people\u2019s aspirations to own such items.<\/span><\/p>\n

Morgan Stanley <\/span>found<\/span><\/a> that in 2022, South Koreans spent the most per capita on designer labels, averaging about $325, which is almost two and six times more than American and Chinese consumers spend on such items, respectively.<\/span><\/p>\n

SOCIAL MEDIA FUELS COMPETITION<\/b><\/p>\n

South Korea\u2019s distorted social norms are deeply intertwined with its competitive culture, where social comparisons are prevalent, Lee of Inha University said. This competitive mindset contributes to a heightened desire for luxury fashion brand items and homeownership among young people.<\/span><\/p>\n

As more young South Koreans attempt to mimic the lifestyles of celebrities, it has evolved into a form of competition among people eager to flaunt their purchases on social media, according to Kim Sung-won, a former reporter for <\/span>Seoul Economic Daily<\/span><\/i>.<\/span><\/p>\n

Lee Ye-bin, a college student, echoed this sentiment, sharing with <\/span>Korea Pro<\/span><\/i> that she is more psychologically affected by her peers than celebrities.<\/span><\/p>\n

\u201cWhen I see my friends vacationing abroad or eating at fancy restaurants on Instagram, I can’t help but compare myself to them,\u201d she said. \u201cI used to think I was from a middle-class family since I could afford to travel abroad once a year. But seeing my friends vacationing abroad several times a year makes me wonder if I truly am middle class.\u201d<\/span><\/p>\n

This competitive spirit has also affected young parents who throw extravagant first-year birthday parties for their children, known as doljanchi in Korean. This centuries-old tradition has grown increasingly <\/span>extravagant<\/span><\/a> in recent years, with some hotels selling doljanchi packages that can cost up to $8,500 (<\/span>11.7 million won<\/span><\/a>).<\/span><\/p>\n

\u201cParents claim that they are spending tons of money on doljanchi for the sake of their babies, but it is actually to satisfy their own egos,\u201d the former reporter Kim told <\/span>Korea Pro<\/span><\/i>. \u201cI can hardly imagine that such over-the-top birthday parties would matter all that much to one-year-olds.\u201d<\/span><\/p>\n

\"\"

An illustration of a lavish wedding | Image: Korea Pro<\/em><\/p><\/div>\n

DETERRING FAMILY PLANNING<\/b><\/p>\n

In addition to South Korea\u2019s competitive culture, the concept of \u201csaving face\u201d also <\/span>significantly influences<\/span><\/a> people\u2019s perceptions of financial normalcy.<\/span><\/p>\n

Kim Da-bin, <\/span>a Seoul-based reporter,<\/span> told <\/span>Korea Pro<\/span><\/i> that seeing one of her friends hold an expensive wedding ceremony at a five-star hotel made her reconsider getting married. She worried that if she could not afford a similar wedding, her ceremony would look shabby in comparison.<\/span><\/p>\n

\u201cPeople\u2019s idea of what it means to have an ideal wedding ceremony is one thing,\u201d college student You told <\/span>Korea Pro<\/span><\/i>. \u201cAnother thing people have to worry about is how much money their prospective spouses have. They all contribute to falling marriage rates because, among other things, they\u2019re worried about what other people will think of them.\u201d<\/span><\/p>\n

South Korea saw an all-time low of <\/span>192,000<\/span><\/a> marriages in 2022, and that number has remained <\/span>below 200,000<\/span><\/a> every year since 2021.<\/span><\/p>\n

Moreover, the impact of these inflated social norms extends beyond marriage and into <\/span>parenting practices<\/span><\/a>.<\/span><\/p>\n

\u201cI see a lot of parents sending their kids to private schools or abroad to study. When I think about working hard every day but not being able to afford my children the same lifestyle as those affluent parents in Gangnam, I wouldn\u2019t dare to have children of my own,\u201d the reporter Kim said.<\/span><\/p>\n

A <\/span>joint report<\/span><\/a> by the education ministry and Statistics Korea underscores these pressures, revealing that South Korean parents spent a record high of $23 billion (31.7 trillion won) on private education in 2023.\u00a0<\/span><\/p>\n

Lee of Inha University said that for over a decade, the South Korean government\u2019s birth rate policy has focused on economic policies, such as extending child allowances to young parents, but this approach has failed to achieve the desired effects.<\/span><\/p>\n

From 2006 to 2021, the South Korean government <\/span>injected<\/span><\/a> approximately $203 billion (280 trillion won) to tackle falling birth rates. However, the downward trend continues, and the figure is expected to drop to around 0.60 this year.<\/span><\/p>\n

\u201cThe drive for perfection has elevated parenting standards, creating self-imposed economic and financial burdens that deter newlywed couples from planning to have children,\u201d Lee told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

\u201cTo address these challenges, we must shift our policy perspective and approach birth rate policies from a sociocultural lens.\u201d<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Culture & Society<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

A growing number of South Koreans perceive themselves as worse off than they are, driven by a phenomenon known as \u201cinflating criteria for average.\u201d This trend, where the lifestyles of the top 10% are conflated with the social norm, creates immense pressure on individuals to emulate unrealistic standards, leading to widespread feelings of relative deprivation […]<\/p>\n","protected":false},"author":10407,"featured_media":2205416,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,25],"class_list":["post-2205415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-culture-society"],"yoast_head":"\nDistorted wealth perceptions make young South Koreans feel poorer than they are - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/06\/distorted-wealth-perceptions-make-young-south-koreans-feel-poorer-than-they-are\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Distorted wealth perceptions make young South Koreans feel poorer than they are - 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