Appetite for Luxury Products Remains High Amid Overall Dampened Consumption

The coronavirus pandemic may have dampened overall private consumption, but sales of luxury handbags, jewels and high-end watches have increased.

According to data obtained from the National Tax Service by lawmaker Suh Byung-soo of the main opposition People Power Party, tax revenue from imported handbags last year increased 38.1 percent on-year, and that from jewelry also grew 19.5 percent, followed by slot machines (19.4 percent) and watches (6.1 percent).

Interestingly, tax revenue from camping-related products surged 95 times to W4.2 billion (US$1=W1,188).

In contrast, taxes collected from horse racing and bars plummeted due to lockdown measures.

"The coronavirus pandemic has plunged the economy into deep contraction, but private consumption on luxury products actually increased among those who earned some profits from their stock investments amid the recent stock market frenzy or saw their assets increase due to soaring housing prices," Suh speculated.