No more YOLO for young South Koreans, who buy less and don’t dine out much

“When I don’t have a scheduled appointment, I try not to eat out. If I have two appointments in a week, I see it as a red flag and adjust accordingly,” Choi says.

Young Koreans are increasingly spending less on dining out. Photo: Shutterstock

An increasing number of young Koreans like Choi are minimising their spending habits and becoming more frugal.

The dominant trend over the past decade has been to YOLO (“you only live once”) it – to prioritise one’s immediate happiness over investing in an uncertain future. This trend was significantly influenced by a rise in single-person households.

The dominant trend over the past decade has been to spend now instead of saving it for later. Photo: Shutterstock

However, thanks to high inflation and low income growth rates, the spending party has come to an end. Now, people are embracing the YONO (“you only need one”) life by reducing their unnecessary spending.

“I used to feel that spending money on personal investments or enjoyment was admired by society. Nowadays, it’s clear that’s not the case,” Choi says.

“For instance, while there are still people who enjoy omakase [Japanese-style chef-curated fine dining], the reactions have changed. People in their twenties became more like, ‘I’d rather spend that on something else.’

“It reminds me of how the older generation reacted when young people first started enjoying that food culture.”

Due to the ongoing job market difficulties and rising prices, young people have the highest perceived economic pain index

Federation of Korean Industries

South Korea’s NH NongHyup Bank analysed its customers’ credit and debit card transaction data from January 1, 2022 to June 30, 2024.

It found that the number of dining-out transactions for people in their twenties and thirties decreased by nine per cent in the first half of 2024 compared to the same period in 2023. The consumption of convenience store foods increased by 21 per cent.

The number of transactions in department stores decreased by three per cent, and the consumption of coffee at places like Starbucks decreased by 13 per cent.

“Inflation is primarily affecting the sectors where young people spend the most, leading to a direct increase in living costs for those preparing for employment or with low incomes,” the Federation of Korean Industries, an economic organisation, wrote in a 2022 study. “Due to the ongoing job market difficulties and rising prices, young people have the highest perceived economic pain index [a measure of economic distress felt by the average person] among all age groups.”

The number of transactions in department stores has decreased by three per cent, found one Korean bank when analysing data from the past two years. Photo: Shutterstock

An increased interest in investing among young people is also playing a role.

“I would prefer to use the money for investments rather than just wasting it,” Lee, a 30-year-old office worker, says.

Despite this, YONO does not mean being frugal in every aspect of life, noted NH NongHyup Bank.

“Instead of owning goods, [younger people] do not hesitate to spend on experiences such as sports or overseas travel.”

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