By Lee Hyo-sik
The country’s new “pension-style” lottery, where the prize money will be paid monthly rather than in a lump sum, has become an instant hit among not only regular lottery ticket buyers, but also the general public.
Its unexpected initial popularity underlines growing public awareness of the importance of post-retirement financial preparation, officials said.
Winners of conventional lotteries receive prize money in a lump sum. But this payment method has created a range of unintended side-effects. Some winners quit their jobs, go on spending sprees and end up worse off than before. Some become addicted to gambling, while others grapple with family feuds over the money.
But the newly-debuted lottery, named “Pension Lottery 520,” awards winners with prize money of 5 million won ($4,700) every month for 20 years, rather than a payout of a 1.2 billion won lump sum.
It is expected to alleviate potential drawbacks of a lump sum payment lottery system, according to the Korea Lottery Commission.
A recipient can designate a beneficiary for the payments in case of the former’s death before the lottery is fully paid.
The lottery’s first two winners were announced on July 5. After taxes, they will receive about 3.9 million won monthly for the two decades. The winners will be picked live through cable news channel YTN at 7:40 p.m. every Wednesday.
Some 6.3 million tickets are issued for each pick and they are up for grabs at convenience stores, street kiosks and lottery shops across the country. It’s also available online (www.ohmylotto.com). Each ticket costs 1,000 won.
But those interested in purchasing the tickets may want to hurry as the number of issued tickets is fixed, unlike conventional lotteries that sell an unlimited number of tickets.
A 60-year-old woman who runs a street kiosk in downtown Seoul said she sold all 500 tickets for last week’s first pick in two days. “The story was pretty much the same for this week’s pick. I think I will secure more tickets for next week’s draw,” she said.
A 52-year-old salaried worker at one of the nation’s public enterprises in Seoul said he was unable to purchase tickets for last week’s first pick because they were all sold out. “I went to nearby convenience stores last Thursday and bought 50 tickets for this week’s second pick of which the winners will be announced Wednesday.”
He said he used to buy Lotto tickets but decided to put all his investments into Pension Lottery 520 because its installment payment system would create a much-needed cash flow for him after retirement.
“I know it is really hard to win a lottery. But if I did, I would still have to worry about how to manage the prize money. But under the new lottery system, I do not have to worry about it. It would greatly help me plan my post-retirement life,” he said.
Many in their 20s and 30s have also expressed a great deal of interests in the installment-type lottery.
“The odds of winning a lottery are really slim. But if I get lucky, I would like to receive the prize money monthly. I do have an impulse to quit my job and go on a spending spree. But the problem is I first have to win,” said a 38-year-old salaried worker in southern Seoul.
To attract greater public attention, the lottery operator has been running an eye-catching ad in newspapers and at subway stations, in which a laughing man is having a nose bleed, with the caption: “No retirement in my life! For 20 years, 5 million won every month.” The ad is sending out the message that salaried workers don’t have to work to the point of getting a bleeding nose if they win the lottery.