As times turn tough, young Koreans indulge on 'little treats' to take edge off

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As times turn tough, young Koreans indulge on 'little treats' to take edge off

Published: 01 Oct. 2025, 07:00

Audio report: written by reporters, read by AI

Citizens take part in a night workout class in Busan on Sept. 14. [YONHAP]

Lim Ji-hye, a 30-something office worker, enjoys running and sewing. She doesn’t hesitate to spend on quality running shoes or high-end fabrics and materials for her sewing projects. Once or twice a month, she and her husband — a sports fan — head to a football or baseball stadium. She spares no expense when it comes to experiences and leisure, but she avoids spending on luxury cosmetics and designer goods.

“I try to cut unnecessary expenses and spend on things that bring me genuine satisfaction,” Lim said.

In the face of economic stagnation and growing uncertainty, spending patterns among people in their 20s and 30s are shifting. Big-ticket purchases, such as department store shopping and cars, are on the decline, while spending on experiences, leisure, and health — all part of self-investment — is on the rise.

This shift was highlighted in a report released Monday by NH Nonghyup Bank, based on big data from its banking, card and retail affiliates. The bank analyzed spending by 26 million customers, including 20.4 million NH Nonghyup Card users and 11 million NH Members customers, at Hanaro Mart during the first half of last year and this year, with a focus on those in their 20s and 30s.

Across all age groups, the number of card transactions rose by 1 percent and total spending increased by 2.2 percent over the past year, below last year’s consumer price inflation rate of 2.3 percent. That suggests a real drop in actual spending when adjusted for inflation. However, results varied by category.

Runners jog along the Namsan trail in central Seoul on Sept. 6. [KIM SEONG-RYONG]

“The ‘treatonomics’ trend is becoming more pronounced, where people cut overall spending during economic downturns but indulge in small luxuries for themselves,” said Woo Chang-seob, head of the data business division at NH Nonghyup Bank. The term “treatonomics” combines “treat” and “economics” — overseas, it is better known as the “little treat culture.”

Department stores down, toy stores up 224 percent

This trend is particularly noticeable among individuals in their 20s and 30s. Over the past year, these age groups cut spending at department stores by 4 percent, at bars by 25 percent, at golf courses by 10 percent and on cars by 6 percent. While similar spending reductions were observed in older groups, the declines were less pronounced.

In contrast, spending at toy stores by people in their 20s and 30s surged by 224 percent over the past year. Adult-oriented collectibles — known as “kidult” toys — have grown popular as a way to express personal taste without the price tag of luxury items. One popular example is the Labubu keyring, based on a Chinese character.

Spending on personal development and hobbies also increased. Ticket purchases for sports games rose by 65 percent and for concerts and musicals by 11 percent. “There’s growing interest in enjoying activities to the fullest, even if it means spending a bit more,” said Lee Dong-gyu, a manager at NH Nonghyup Bank, adding that more people now seek out well-equipped facilities like ski resorts, futsal courts, indoor basketball courts and baseball centers. Ski resort use rose by 115 percent and swimming pool visits by 24 percent.

″Kidult″ goods are on display at a fair in Gangnam District, southern Seoul, on March 23. [YONHAP]

A woman knits a vest at a recycling center in Eungam-dong, northern Seoul, on Jan. 17, 2022. [JOONGANG ILBO]

Spending on pets also rose — by 6 percent at veterinary clinics, 14 percent at pet day cares and 19 percent at pet cremation services. These are considered emotional consumption stemming from strong bonds with companion animals.

Bread pilgrimages and healthier eating despite higher prices

In food spending, so-called “bread pilgrimages” — visiting popular bakeries — stood out. Franchise bakery purchases at Tous Les Jours and Paris Baguette dropped by 12 percent, while spending at well-known independent bakeries increased by 29 percent. For instance, payments at Sungsimdang, a famous bakery in Daejeon, rose by 9 percent. The average spend per visit was 25,770 won ($18) at Sungsimdang and 21,460 won at viral bakeries — roughly double that of franchise chains, which averaged 11,940 won.

“On weekends, I visit well-known bakeries to relax and enjoy the experience," said Lee Ye-won, a 37-year-old office worker. "That alone is a big source of joy.” Similarly, spending on gourmet burger brands increased by 8 percent, while payments at fast-food chains like McDonald’s and Lotteria declined by 5 percent.

The Guardian noted that Generation Z — born in the mid-1990s to early 2000s — often rewards themselves with “cute little things” like $19 smoothies for having survived tough times. The newspaper called this a modern example of the “lipstick effect,” where small indulgences persist during economic downturns. U.S. organic food chain Whole Foods also noted in a report that TikTok creators have helped popularize the “little treat culture” as a zeitgeist, and that the company is embracing the trend.

A department store in central Seoul begins sales ahead of the Chuseok holidays on Sept. 26. [YONHAP]

At supermarkets, purchases of health-conscious food increased. Among people in their 20s and 30s, granola purchases rose by 11 percent year over year — outpacing the 6 percent increase for regular cereal. Sales of protein drinks increased by 53 percent, while low-sugar or sugar-free drinks rose by 22 percent, compared to a 6 percent rise for conventional beverages. Greek yogurt sales grew by 64 percent, while regular yogurt climbed by 11 percent. Purchases of stevia, a sugar substitute, surged by 184 percent, while sugar itself fell by 1 percent.

Spending on self-care also rose significantly among people in their 20s and 30s — by 7 percent at plastic surgery clinics, 3 percent at dermatology clinics and 9 percent at aesthetic salons. Spending on herbal medicine for weight control or body constitution management spiked by 41 percent.

From ‘YOLO’ and ‘flex’ to value-based spending

Consulting firm KPMG said the trend reflects a shift away from flashy “YOLO” — you only live once — and “flex” spending.

“People in their 20s and 30s, who once spent freely in the name of YOLO or flexing, are now facing prolonged economic uncertainty and becoming more selective,” the firm said. “They are cutting costs where they can and spending more on categories they personally value — leading to more segmented and value-driven consumption patterns.”

Baseball fans watch a game at the Daejeon Hanwha Life Ball Park in Daejeon on Sept. 27. [YONHAP]

As for asset management, 20- and 30-something customers of NH Nonghyup Bank held most of their money in installment savings (47.2 percent) and fixed deposits (17.2 percent) as of the second quarter of this year. Just 6.6 percent was in funds.

“Younger customers are preparing for large expenses like marriage or buying a home, so they prioritize safety when building capital,” said a bank official. “Few are going all-in on stocks.” The implication is that young consumers now seek both practicality and security in managing their finances.

“NH Nonghyup Bank is the only institution in Korea with access to finance, card and retail data, allowing for large-scale analysis,” said NH Nonghyup Bank President Kang Tae-young. “We will work harder to detect the latest trends in finance and consumption and provide tailored financial services accordingly.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YU-MI [[email protected]]