By Lee Hyo-sik
Ahn Eun-kyung, 30, had planned to purchase a new air conditioner ahead of the summer season to replace one that broke last year. But the housewife from southern Seoul recently changed her mind and instead opted to buy two electric fans; one for the living room and the other for the kitchen.
``Initially, I had wanted to buy a brand new air conditioner and install it in the living room so that my family can better cope with another hot summer. But I decided not to because new air conditioners cost a lot more than in the past,’’ Ahn said.
She said her husband’s salary has just inched up over the past year, in contrast to surging prices of food and other basic necessities. ``It was simple math that I couldn’t afford a new air conditioner with my husband’s wage. Instead, I bought two fans from a nearby discount store. Each cost me much less than 100,000 won ($85).’’
She also said higher electricity charges, which are widely expected to go up further to help prevent the repeat of last year’s rolling blackout, has discouraged her from buying electricity-guzzling air conditioners.
Like Ahn, many consumers these days have turned to low-priced electric fans for cooling due to financial hardship and rising utility bills.
According to the country’s three department stores Sunday, they have seen the sales of electric fans jump by as much as 50 percent this month, compared to a year earlier.
Lotte Department Store said from May 1 to 14, sales of electric fans soared 50 percent across its outlets from the same period last year, while Shinsegae Department Store posted a 40-percent jump during the 15-day period, followed by Hyundai Department Store at 20 percent.
Discount stores reported even larger increases in sales of electric fans.
In the first two weeks of May, E-Mart, Korea’s largest discount store chain, sold 205 percent more, compared to the same period in 2011, followed by Home plus at 200 percent and Lotte Mart at 156 percent. All three stores expect their May sales will hit an all-time high.
``The upcoming summer is widely expected to be one of the hottest in recent years. But many consumers have opted to purchase low-priced electric fans rather than air conditioners,’’ an E-Mart spokesman said. ``This frugal consumption pattern is largely due to the continued economic downturn.’’
He also said rising utility bills have discouraged more consumers from purchasing air conditioners. ``Air conditioners consume a lot more power than fans. With rising electricity charges, many have decided to with cheaper alternatives.’’
The government increased utility charges in August and December over the past year in a bid to lower power consumption and reduce the deficits of Korea Electric Power Corp. (KEPCO).
Fearing a repeat of the nationwide rolling blackout last September, the government plans to further increase electricity costs ahead of the summer season.
Earlier this month, the state-run electricity supplier asked the government to allow it to raise utility bills by an average of 13.1 percent as soon as possible to improve its worsening balance sheet and help reduce power consumption.
In response, the Ministry of Knowledge Economy has hinted at upping electricity charges by more than 5 percent, despite concerns over growing inflationary pressure.