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Two-thirds of Gen Z will pay more for products from 'ethical' companies

Published: 06 Aug. 2025, 17:04 Updated: 06 Aug. 2025, 17:08

Visitors sample vegan perfumes at a vegan exhibition held at Coex in southern Seoul on July 18. [YONHAP]

Nearly two-thirds of Gen Z consumers in Korea are willing to pay more for products from companies that uphold environmental, social and governance (ESG) values, signaling a shift toward value-based consumption that is also shaping their career choices and brand loyalty.

The Korea Chamber of Commerce and Industry (KCCI) on Wednesday released the results of a nationwide survey of 350 members of Gen Z — born between the mid-1990s and the early 2000s — titled “Perception of ESG Management and Consumer Trends” (translated), which found that younger consumers increasingly express their values through purchasing decisions — not only by choosing companies that practice ESG principles, but also by avoiding those they view as unethical.

When asked if they would purchase ESG-compliant products even at a higher price point, 66.9 percent of respondents said yes. At the same time, 63.7 percent said they had boycotted a company due to unethical practices or negative ESG-related controversies.
The generation’s preference for ESG values also extended to their career decisions.

About 54.2 percent of respondents said they consider a company’s ESG performance when applying for a job or changing employers. But 65.4 percent said they worry about companies misleading consumers about the environmental benefits of their products or practices.

The KCCI survey also asked Gen Z respondents to name their top consumption-related keywords.

A customer browses products at a Loewe Perfumes standalone boutique on the first floor of Lotte World Mall in Songpa District, southern Seoul, on Feb. 21. [NEWS1]

The most common response was jjant-tech at 32.9 percent, a slang term combining the Korean word “stingy” and tech, which refers to the practice of maximizing savings through budget-conscious spending, the use of finance apps, coupon stacking and strategic consumption habits.

That was followed by “meaning out” at 26.5 percent, a term that blends “meaning” and “coming out.” It refers to the act of openly expressing one’s personal beliefs, values or social causes through consumption.

Aboha followed next at 23.3 percent, an abbreviation of the Korean phrase for “a very ordinary day.” The term reflects a growing lifestyle trend among young Koreans who find meaning and happiness in small, everyday moments.

Many also reported practicing sustainable lifestyle choices, with 32 percent of respondents saying they wear upcycled fashion, 25.1 percent purchasing vegan or alternative protein products and 22.2 percent using zero-waste refill stations where consumers can refill their own containers with products like detergent or cooking oil rather than buying prepackaged goods.

“Companies that neglect ESG risk losing the support of Gen Z, the future core of the economy,” said Cho Young-jun, head of KCCI’s ESG platform. “To keep up with recent consumer trends, businesses must adopt sincere and transparent ESG practices.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KI-HWAN [[email protected]]