Korea's 'Grand Generation' to overtake MZ as main consumer group

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Choi Il-sun's busy day starts at 5 a.m. every day. He eats breakfast, reads the news and prepares for his three lectures — one for teenagers, another for middle-aged people contemplating their future careers and a third on well-dying. Whenever his schedule isn’t packed with lectures, he volunteers at the local community center, trying to connect with people.

It has been nine years since his retirement, yet he says he is more satisfied than ever.

"When I was still working, I didn’t really have a concept of life after retirement. Since I had a stable job with guaranteed retirement, I also didn’t think much about the second half of my life back then," the 67-year-old retiree in Gwangju said. "But I started thinking it would be good to do something that could contribute to the local community. So I studied social welfare and counseling at night university."

Like Choi, people born between 1950 and 1971, who actively participate in economic, social and leisure activities, are classified as the "Grand Generation," according to a report by the Korea Chamber of Commerce and Industry (KCCI). This population, mostly in their 50s and 60s, possesses significant purchasing power and is in good shape, challenging the common misconception that people struggle with financial instability and poor well-being as they grow older.

Their financial stability stems from Korea’s rapid economic development in the 1970s and 1980s, during which they earned more than five times what previous generations did. With increased life expectancy, they are the healthiest people within this age range the nation has ever seen.

"They prioritize appearance and health management and have strong purchasing power for premium products. While actively participating in leisure and social-cultural activities, they are also willing to invest in personal growth with a proactive approach to consumption," Suh Yong-gu, a business administration professor at Sookmyung Women’s University, said.

Choi said most of his spending is on hobbies such as table tennis, hiking and reading. "Although it can be physically demanding at times, it ultimately strengthens both the body and mind."

Older adults compete during an outdoor event hosted by the Korean Senior Citizens Association at Hyochang Stadium in Seoul, June 4, 2024. Newsis

Another key trait of the Grand Generation is their active use of digital services, including social media and fintech. A survey from Hana Bank’s research center noted that eight in 10 people aged 50 to 64 with financial assets exceeding 100 million won ($68,450) used mobile channels for financial transactions within the past six months.

Given this shift, the KCCI suggested that corporations adjust their business strategies — which have been centered around the MZ Generation (Millennials and Generation Z) lately — to better cater to the Grand Generation.

The industry catering to the Grand Generation is projected to grow from 72 trillion won in 2020 to 168 trillion won in 2030, according to the Korea Health Industry Development Institute.

"This demographic will play a central role in the era of super-aging," the KCCI stated in the report. "As the elderly population surpasses the younger generation, the product and service market will undergo significant shifts, presenting new business opportunities."

Yet, despite the market’s growth potential, no single company has secured a dominant position, an official from the venture capital industry noted. "A surge in startups with business models catering to this age bracket is expected in the coming years."

To gain a foothold in these emerging opportunities, market watchers emphasized that segmentation is crucial. While the older generations lived in a time when life was deeply immersed in work, with little awareness or opportunity for leisure, the Grand Generation embraces new possibilities.

"These two groups represent entirely distinct markets," Senior Life Business CEO Choi Hockey said. "The senior industry is often perceived as a field where success is guaranteed, simply due to its large consumer base. However, many senior-related products have failed because they were poorly designed or merely imitated existing ones."