What Koreans Spend the Most Money On
If you walk around Gangnam or Hongdae, you might get the impression that everyone in Korea is rich. People are wearing the latest season of Balenciaga, holding the newest iPhone, and sipping expensive lattes. The streets look like a runway.
But here is the secret: We aren’t all millionaires. We just have… very specific priorities.
Korea is a hyper-trend-sensitive society. When we earn a paycheck, it doesn’t just sit in a savings account. It gets funneled into a few key categories that define the “Korean Lifestyle.”
Curious about where the money actually goes? Here is the breakdown of the top 5 things Koreans spend the most money on (and why we can’t stop).
1. Private Education (The “Hagwon” Black Hole)
If you think university tuition in the US is expensive, wait until you meet a Korean parent. In Korea, education is essentially an arms race. It’s not enough to go to school; kids have to go to Hagwons (private academies) after school until 9 or 10 PM. Math, English, Piano, Taekwondo, Coding… you name it.
The Reality: Many families spend 20-30% of their entire household income just on private tutoring. We have a term called “Edu-Poor”—parents who are broke because they pour every cent into their child’s education. It’s the ultimate investment in the future.
2. The “Ah-Ah” Addiction (Cafe Culture)
I have said it before, and I will say it again: Coffee is water in Korea. But we don’t just brew it at home. We spend a massive amount of money at cafes. Whether it’s a 1,500 won budget coffee or a 7,000 won fancy latte with a view, the average Korean visits a cafe nearly every day.
The Spend: It’s not just the coffee; it’s the desserts. Paying $15 for a fluffy Strawberry Soufflé Pancake or a Mango Bingsu (shaved ice) is considered a standard weekend activity. We pay for the “vibe” as much as the sugar.
3. Luxury Goods (The Art of the “Flex”)
Here is a crazy stat: South Koreans are the biggest spenders on luxury goods per capita in the world. In Korea, appearance is power. Carrying a Chanel bag or wearing a Moncler jacket isn’t just about fashion; it’s a social signal that says, “I have my life together.”
The Phenomenon: We have something called the “Open Run.” People literally camp outside department stores at 5 AM just to sprint inside when the doors open to buy a luxury bag before it sells out. It’s chaotic, it’s expensive, and we love it.
4. Delivery Food (The Convenience Tax)
Cooking? Who has time for that? With apps like Baedal Minjok and Coupang Eats, you can have anything delivered to your door in 20 minutes. Because life in Korea is so fast-paced (Palli-Palli), many young Koreans spend a huge chunk of their salary on delivery food. It’s not just pizza; we order sushi, steamed pork, pasta, and even grilled intestines. It adds up fast, but the convenience is too addictive to give up.
5. Golf (The New Status Symbol)
In the past few years, Golf has exploded in Korea, especially among the younger generation (MZ Generation). It used to be an “old rich man” sport, but now, everyone wants to post a photo on Instagram wearing cute golf clothes.
The Cost: Green fees in Korea are incredibly expensive. A weekend round can cost $200-$300 per person. Plus, you have to buy the gear and the outfit. It is rapidly becoming one of the biggest leisure expenses for young professionals.
Final Thoughts
So, if you see a Korean person drinking an expensive iced coffee, wearing a luxury logo tee, and complaining about being broke… now you know why. We spend to improve ourselves, to save time, and—let’s be honest—to look good doing it.