Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Young generation arises as new center of Korean politics, economy
By Nam Hyun-woo
Millennails, Gen Z seen as swing voters for upcoming presidential election
By Nam Hyun-woo
Young people in their 20s and 30s are emerging as the new center of Korean politics and the economy, spearheading changes in various aspects of society.
Called the “MZ Generation” ― a combination of Millennials and Generation Z ― they show no hesitation in expressing their opinions on various issues; and political parties, businesses and civic groups are being compelled to listen to their voices. Many Koreans now agree that they exert an influence across all of society, and this growing influence is outpacing all other demographic groups
The MZ Generation is the most commonly accepted term in Korea to categorize those who were born between about 1981 and 2005. It is not an internationally accepted term, and there are arguments that Millennials ― born between 1981 and 1995 ― and Generation Z ― born between 1996 and about 2005 ― should be treated separately given their differences, but the term has now been widely accepted to categorize the attitudes and behavior of those in their 20s and 30s.
Compared to the previous Generation X, the MZ Generation is described as more individualistic and digitally fluent, as well as more practical in relationships with others. Particularly in Korea, these people are described as being more caring about fairness and are active in expressing their opinions on social matters compared to previous generations.
A recent poll of MZ Generation “members” provides grounds for such a description. According to a June 22 survey by Deloitte Global on 23,000 people in the MZ Generation in 45 countries including Korea, 73 percent of Millennials and 76 percent of Gen Zers in Korea said wealth and income were being distributed unfairly in the country, far higher than the global average ― 69 percent of Millennials and 66 percent Gen Zers.
People Power Party Chairman Lee Jun-seok speaks during a party recruitment event for talented people in their 20s and 30s at the National Assembly on Yeouido, Seoul, July 19. Yonhap
And the domestic political circle is striving to attract these younger people to their folds. Korea's main opposition People Power Party (PPP) appointed 36-year-old Lee Jun-seok as its chairman, despite the Harvard graduate having no experience as an elected lawmaker.
Following his appointment, Lee hosted a debate contest to select the party's spokesperson, regarded as an experiment here, and appointed a pair of MZ Generation members as its spokesmen ― Lim Seung-ho, 27, and Yang Jun-woo, 26.
Despite initial concerns that the young “politicians” could end up being political accessories, their presence is generating appeal among the public. In a recent survey conducted by the Hyundai Research Institute on 1,208 adults, 50.3 percent of respondents said they have high expectations for Lee as PPP chairman.
Cheong Wa Dae also responded by appointing Park Seong-min, 25, a former Supreme Council member of the ruling Democratic Party of Korea, as presidential secretary for youth affairs, although the appointment drew a backlash from the public and opposition parties, which questioned her qualifications.
The shift to younger people became apparent after the April 7 by-elections to pick the mayors of Seoul and Busan, in which the liberal ruling party suffered crushing defeats after apparently losing support from younger voters. Pundits here are now saying the MZ Generation will be the swing voters in next year's presidential election, and winning their support will be critical for the candidates.
“I sense that the MZ Generation doesn't hesitate in expressing their opinions, and is less loyal to ideological thinking,” an official of the ruling bloc said. “They don't care much about conventional political logic and rather focus more on practical things, which appeals to the public these days.”
Lee Kun-woo, 27, head of Hyundai Motor Group's Office Workers and Researchers Union, submits documents on the union's establishment to the Seoul Regional Employment and Labor Office in Seoul, April 26. Courtesy of Daesang Labor Law Firm
'MZ union'
The MZ generation's rise is not limited to the political circle ― it is solidifying its presence in business too.
On April 29, a group of office workers and researchers at Hyundai Motor Group companies organized a union. Led by Lee Kun-woo, 27, a researcher at Hyundai Kefico, the union's leadership is comprised of workers in their 20s and 30s.
It is not recognized as a bargaining entity by Hyundai Motor Group management ― these are currently only unions of factory workers on manufacturing lines. However, Lee's union, described as the “MZ union” by Korean newspapers, has secured more than 5,000 members in the three months since its establishment.
A month earlier, LG Electronics office workers also formed a union, and its establishment was led by Yoo Jun-hwan, 30, who has been working for the company for only three years. The union now has more than 3,000 members.
Unlike other unions at these companies, the new entities are reluctant to join umbrella groups such as the Korean Confederation of Trade Unions (KCTU) or Federation of Korean Trade Unions (FKTU). The KCTU and FKTU are Korea's two largest umbrella unions, having influence on most unions at companies here, and are known for their aggressive stances in strikes and other types of labor disputes.
On June 25, Lee, Yoo and other young union leaders had a meeting with Presidential Economic, Social and Labor Council Chairman Moon Sung-hyun, during which they stressed that they believe “it is time for a paradigm shift in union activities,” and that they were “skeptical about unions' militant actions, given their costs to society.”
“Labor movements in the past used to highlight the combative side because labor conditions could not improve without disputes,” Moon said. “I agree with the new unions' call for communication toward rationality and fairness, and the country's labor-management relations should reflect the new union model.”
Customer base
As the MZ Generation's influence grows, businesses are considering them as a major customer base and are keen to draw their attention.
This trend is noticeable within the financial industry, which has long been considered one of the most conservative sectors in Korea.
According to the Korea Securities Depository, the number of investors in Korea stood at 9.14 million at the end of 2020, and 37.4 percent of them were under 30. Their total investments increased 98.2 percent from the previous year, reaching 67.8 trillion won.
Seen above is a lunch box co-released by E-mart 24 and Hana Financial Investment, July 14. The lunch box contains a coupon exchangeable for one share in one of the top 10 cap companies. Courtesy of E-mart 24
To attract their attention, brokerage Hana Financial Investment teamed up with convenience store chain E-mart 24 and launched a lunchbox set July 14, which came with a coupon that offered one share in one of the top 10 market capitalized companies on the Korean bourse, selected at random.
Kiwoom Securities and Samsung Securities are running YouTube channels each having 1.23 million and 1.09 million subscribers.
Recently, KB Financial Group Chairman Yoon Jong-kyoo and Woori Financial Group Chairman Son Tae-seung sent messages to their senior executives telling them to pay greater attention to the voices of the MZ Generation.
“A number of big companies have disappeared from the market due to their failure to respond agilely to changes,” Yoon said during a meeting with executives earlier this month. “KB's management needs to swiftly carry out tasks proposed by the MZ Generation, so as to establish itself as the No.1 financial platform.”