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YONO is a new way for South Korean teenagers to focus on managing money more efficiently by focusing only on what is needed and valuable. According to Statistics Korea (KOSTAT), inflation continued to increase during 2021-2023, resulting in higher expenses, while income growth was lower. Inflation in 2021 was 2.5%, 2022 was 5.1%, and 2023 was 3.6%, while salary increases were markedly reduced.
This change has led many teenagers to consider spending less on non-essential items and focus more on saving and investment. For example, NH NongHyup Bank indicated that the number of dining-out credit cards decreased by 9% in the first half of 2024, while convenience store purchases increased by 21%. There was also a 3% drop in department store spending and a 13% drop in coffee purchases from famous stores such as Starbucks.
Of course, YONO didn’t happen for no reason. The sluggish economy and high inflation forced the younger generation to change their spending habits. The emphasis on investment and savings has played an important role in this change. Here is an example from an interview with Choi Ye-bin, a 27-year-old event manager, who said, “If there’s no date with anybody, I’ll try not to eat out, but if I have two appointments in a week, I’ll feel like it’s too much.”
This adjustment reflects the needs of the younger generation, who want to be more secure not only in the present but also in the future. According to the Federation of Korean Industries (FKI), the uncertainty in the labor market and the high cost of living make young people more cautious about spending.
The changing behavior of South Korean teenagers has also affected businesses such as Orion, a well-known confectioner that has adapted its marketing strategies to match teenagers’ buying behavior by turning to small and affordable products to attract consumers who value prices, while 7-Eleven sells alcoholic beverages at accessible prices, making it get a great deal of feedback.
Even though teenagers are spending more on what is needed, they are spending more on their favorite travel and activities, especially overseas travel. Investing in these experiences is still important in teenagers’ lives.
YONO is a response to the current economic situation that has forced South Korean teenagers to change their spending methods from being addicted to luxury to making rational choices and pursuing a more secure future. With this concept, teenagers are not only concerned about living today but also have a vision to deal with the future more carefully.
In an era of inflation and economic uncertainty affecting all lives, the YONO lifestyle can be a safe and sustainable alternative for South Korean teenagers to effectively address the challenges of present and future life.
References from
longtungirl / theopener / koreatimes / thematter / scmp
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