South Korean consumers are likely to spend less or limit buying to last year’s level during the upcoming Lunar New Year holidays, mainly due to higher prices and economic concerns, a local poll showed Monday.
The poll, conducted by the Korea Chamber of Commerce and Industry on 600 housewives in Seoul and the Gyeonggi region, showed 92.5 percent saying they will cut down or control their spending in the next few weeks.
Of the total, 40.6 percent said they will reduce purchases, with 51.9 percent saying they will try not to spend more compared to the 2011 Lunar New Year.
Lunar New Year, along with Chuseok ― the harvest moon festival ― is the most important traditional holiday in South Korea, with people generally spending more money to make special food and buy presents for friends and relatives.
This year’s Lunar New year, which is determined by the lunar calender, falls on Jan. 23.
The KCCI said that 49.4 percent of housewives cited higher consumer prices as the reason for tightening their purse strings, with 27.9 percent saying they have experienced loss in buying power and earnings that necessitated cuts. Of the total, 10.9 percent said they are concerned about economic uncertainties that include worries over job loss down the road.
Of the respondents, 52.6 percent said they will reduce presents and cash gifts, with 39.3 percent indicating they may cut back on the food they prepare this year.
Reflecting this, 30 percent of housewives said they plan to spend between 50,000 won and 100,000 won ($43-$86) on gifts, followed by those that said they will buy presents that cost between 30,000 won and 50,000 won.
South Korea’s largest private economic organization, meanwhile, said 47.0 percent of those polled have called for the government to better stem inflation, with 21.7 percent calling for more jobs.
Many consumers added they wanted farm and fisheries prices to go down, with many calling for lowering home rental and educational outlays.
