'Active seniors' become dominant consumer group

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As Korea becomes a super-aged society, healthier and wealthier elderly people, often referred to as "active seniors," are emerging as the predominant consumer group. Active seniors are individuals aged 50 and above who remain active in social endeavors and continue to indulge in consumption and leisure activities post-retirement.

According to recent data from BC Card, both the number of its customers aged 60 and over and the transaction volume from this age group have seen sharp upticks over the past five years. When compared to 2018, the number of customers and transaction amounts have grown by 7.3 percent and 8.5 percent, respectively.

What's notable is that their spending in the child-rearing market showed a significant increase.

From January to August, compared to the same period of the previous year, the amount they spent surged by 54.7 percent in kids cafes, 50.6 percent in pediatric hospitals and 27.3 percent in private education. Moreover, this spending was higher than the average expenditure across all age groups.

"This demonstrates the growing influence of grandparents, both economically and educationally," a BC card official explained.

Additionally, they tend to allocate a significant portion of their budget to leisure activities, particularly travel.

From January to August, travel expenses surged by 94.6 percent and spending at duty free shops increased by 83.5 percent compared to the same period the previous year. When compared to 2021, the increase was even more pronounced: travel costs surged by 277.7 percent and duty free shopping by 153.7 percent. On average, senior customers outspent other age groups by 24 percent.

Their spending also extended to dietary supplements and home shopping.

The Korea Health Industry Development Institute anticipated the scale of the senior-friendly market to more than double from 72 trillion won ($53.7 billion) in 2020 to 168 trillion won in 2030.

"As the baby boomer generation transitions into senior citizenship, demand for the 'silver' market is anticipated to rise. This generation, having witnessed Korea's rapid economic development and public consumption firsthand, is perceived as being more culturally open with a strong inclination towards consumption," said Kim Mun-sun, a senior researcher at the Korea International Trade Association. "This contrasts with earlier seniors who primarily planned their post-retirement lives around support from their children."

The Financial Supervisory Service (FSS) sounded the alarm on Wednesday over the financial damage senior citizens are experiencing due to illegal private financing. According to the FSS, illegal businesses are capitalizing on their keen interest in post-retirement life. The scammers approach them through events labeled as "retirement fairs" and deceitfully offer payouts similar to lifetime pensions, all while posing as legitimate cooperative ventures.