South Koreans are now the top spenders on fancy things in the world. A report by Morgan Stanley, a big investment bank, shows that South Koreans spent the most money on luxury items like expensive bags, clothes, watches, and makeup. In 2022, their spending on these things grew by 24% to $16.8 billion, which is about $325 for each person. This is more than what Americans and Chinese people spent.
One reason for this increase is the rising prices of houses in Korea. Even if people couldn’t buy homes, they felt richer because their houses became more valuable. So they started buying luxurious things, even young Koreans who didn’t have much money.
A lot of famous Korean celebrities promote luxury brands. For example, K-pop star Jennie and rapper G-Dragon represent Chanel, a famous French luxury brand. Actor Lee Min-ho is the ambassador for Fendi, an Italian luxury fashion brand. BLACKPINK member Rose helped Tiffany’s sales double for their HardWear collection.
In Korea, it’s more acceptable to show off wealth. A survey found that only 22% of Koreans think it’s bad to show off luxury goods, while 45% of Japanese and 38% of Chinese people feel that way.
Many luxury brands are making more sales in Korea. The company that owns Cartier said that Korea is a leading market for them and their sales grew a lot in 2022.
This trend is part of a global increase in luxury spending. It has made Bernard Arnault, a rich French businessman who owns luxury brands, the richest person in the world.
