Hello, I am Jun Ji-hye, a reporter at The Korea Times. I primarily cover financial authorities and write articles on a wide range of topics related to finance and capital markets. If you have any information to share, feel free to email me at jjh@koreatimes.co.kr, and I will review it carefully. I am committed to always doing my best to communicate with readers through high-quality articles.
Gen Z drives values-based consumption amid growing ESG awareness
Graduates toss their caps in celebration during a graduation ceremony at Sungshin Women’s University in Seoul, Feb. 21. Newsis
By Jun Ji-hye
Kim Ji-min, a 22-year-old university student in Seoul, recently switched her choice of daily necessities to brands that use eco-friendly packaging to reduce plastic waste.
“Even if the price is a bit higher, I want to support companies that care about the environment," she said. "I often share information about brands using eco-friendly packaging with my friends.”
She added that she had stopped purchasing products from some global clothing brands after learning about their past scandals regarding pollution.
Similarly, Shim, a 28-year-old private academy teacher in Incheon, stopped buying products from a global fashion brand a few years ago after the company sparked public outrage over a racially insensitive ad.
“I used to buy from the brand often because I liked their designs, but once I learned about the issue, I didn’t want to support them anymore,” she said. “No matter how good the products are, I can’t support a company that lacks sensitivity to human rights.”
The growing emphasis on environmental, social and corporate governance (ESG) across society is fueling a rise, especially among Generation Z consumers (age 17-28), to show personal values and beliefs through purchasing decisions. Koreans describe this practice with the term "meaning out."
This new consumer trend was also evident in a survey published, Wednesday, by the Korea Chamber of Commerce and Industry (KCCI).
The survey, which polled 350 Gen Zers across the country, found that 66.9 percent were willing to purchase products from companies that practice ESG, even if the prices were higher. In comparison, only 8.1 percent said they would not be willing to pay more.
The findings also revealed that Gen Z consumers do not hesitate to boycott companies that have caused public controversy or acted unethically. When asked if they had ever stopped purchasing from a brand due to negative ESG-related or ethical issues, 63.7 percent said they had, while 36.3 percent said they had not.
gettyimagesbank
Respondents identified excessive plastic use, lack of inclusivity in workplace cultures and inadequate communication with stakeholders as key ESG issues requiring urgent improvement.
Gen Z consumers are also highly sensitive to whether companies are sincere in their ESG initiatives, with 65.4 percent voicing concerns over “greenwashing,” wherein firms exaggerate or falsely declare their environmental efforts.
The results indicate that young consumers are likely to turn away from companies that treat ESG as a superficial branding tactic rather than a meaningful commitment.
Furthermore, a company’s commitment to ESG management is influencing career choices among Gen Zers.
More than half of those surveyed — 54.2 percent — said they consider a company’s ESG practices when applying for or accepting a job offer.
Cho Young-jun, executive director leading sustainable management at the KCCI, highlighted that companies that neglect sustainable management risk being disregarded, given that Gen Zers are becoming the backbone of the future economy.
“Authentic ESG commitment is crucial. We will keep advancing projects like fostering new entrepreneurship and social value to tackle challenges, reflecting the concerns of young people,” he said.