Koreans turn to cheap gift sets due to economic downturn

/ Yonhap

Koreans are taking a frugal approach to this Lunar New Year (Seollal) season due to the continuing economic downturn.

According to the country’s retailers, average sales are down by around 3 to 5 percent this month from the same period last year, but those for low-priced gift sets have increased.

The most popular gift boxes contain spam, fruit and beauty products such as shampoo and cosmetics.

Sales of pre-ordered gift sets in the price range of 10,000 ($9.1) and 30,000 won ($27.5) were up 32.4 percent this month between Dec. 29 and Jan. 4 on a year-on-year basis, said Home plus, the Korean chain of British retail giant Tesco. The price of about half of the retailer’s gift sets was less than 30,000 won this month.

The average amount of holiday spending has decreased, said industry insiders.

According to a survey by online trading site Auction, the amount that people spent went down by 40,000 won ($36.7) last month, on a year-on-year basis. The survey was conducted on 1,237 consumers.