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Hit by a downturn in the economy, Korean consumers who feel like having a drink are now reaching for soju, a popular local liquor instead of more expensive whisky.
And with higher living and fuel costs, Korean drivers are starting to opt for smaller, more gas-efficient cars over large sedans and SUVs. Figures released by the Korea National Statistical Office show an increase in domestic sales of small cars, soju and cigarettes -- items typically associated with recession. These items generally post higher sales during an economic slowdown.
According to data, domestic shipments of whisky amounted to 4,728 kilolitres in the first half of this year, a 22 percent drop compared to the same period last year.
Shipments of soju rose by almost six percent to roughly 63,000 kilolitres during the same period. Shipments of cigarettes also started to pick up again.
Korean drivers also felt the pinch as they set their sights on small cars, resulting in a shipment growth rate of 25 percent for the segment.
SUVs were hit the hardest by rising fuel prices -- domestic shipments dropped 19 percent year on year. Also noticeable was the growing popularity of household appliances that now feature stripped-down, simpler functions and a much lower price tag.
However, not all products were hurt by the economic crunch. Shipments of high-end products, like LCD TVs and GPS navigation systems, are on the rise.
Uncertainties over the economy are also leading to a growing demand for so-called "recession products" in the financial sector.
Several financial packages, including insurance policies that cover loans and debt resulting from death, accident, or unemployment, are reportedly being snapped up by jittery consumers.
Arirang News
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