Chuseok gift spending divides as items vary by price

Shinsegae Department Store begins full sales of Chuseok gift sets. [Courtesy of Shinsegae Department Store]

As the Chuseok holiday approaches, a clear divide in gift spending is emerging, with consumers gravitating toward either high-end or budget-friendly options.

Department stores are seeing increased sales of premium items, while online platforms cater to those seeking more affordable alternatives.

According to an analysis released Sunday by Hyundai Department Store, the proportion of Korean beef (hanwoo) gift set sales has steadily risen over the past five years.

Last year, nearly 30 percent of Chuseok gift set buyers chose hanwoo, up from 24.9 percent in 2019. In response to the growing demand for premium goods, Hyundai Department Store increased its supply of top-tier hanwoo sets by 20 percent compared to last year, offering selections like the Hyundai Premium Hanwoo No.9 at 3 million won ($2,260) and the Hyundai Premium Hanwoo at 2 million won.

E-commerce platforms are seeing a surge in budget-conscious spending.

SSG.com reported a 112 percent year-on-year increase in sales of gift sets priced under 30,000 won, from August 2 to August 21.

Popular items included canned goods like tuna and ham, as well as fruit jams and cooking oil sets.

Similarly, body care gift sets under 50,000 won saw a 106 percent rise during the same period, with products like hand wash, foot shampoo, and body wash topping the sales list.

The shift is particularly noticeable in fresh food gifts. Affordable meat options such as Australian LA ribs and locally sourced pork saw a 20 percent sales increase compared to the same period last year. Fruit sets, including apples, pears, kiwis, and Shine Muscat grapes, also performed well.

One resident in her 30s from Gangdong District, eastern Seoul, recently pre-ordered three sets of premium hanwoo from Hyundai Department Store’s Trade Center branch, each priced at 550,000 won.

“I prefer to shop offline when purchasing high-end gifts,” she said. “Since I skipped traveling abroad this year and chose to give more luxurious gifts instead.”

The growing demand for both 3 million won hanwoo sets at department stores and canned goods under 30,000 won on online platforms underscores the polarization in consumer spending.

“For those wishing to give a special, meaningful gift, premium hanwoo from department stores is the go-to choice,” said Lee Eun-hee, a consumer studies professor at Inha University. “On the other hand, for those needing to provide affordable gifts to many people, online shopping mall products offer the best value. This reflects strategic consumer spending in an era of high inflation.”