Consumers over 60 are emerging as the most powerful force in South Korea, overtaking those in their 40s. According to Statistics Korea, people over 60 now account for 29.1% of total net household assets, compared to the 26.6% stake by those in their 40s.
Even until 2006, those in their 40s accounted for 31.6% of total net assets compared to 27.5% by over 60s. As of the end of June this year, the total amount of money in bank accounts by over 60s stood at SKW257.6 trillion, up 9.7% compared to three years ago. The current figure represents 34.8% of total bank deposits, although the over 60s are only 20% of the population.
Affluent people over 60 have also become the new big spenders. Among Lotte Department Store customers, their number rose from 56,000 in 2008 to 102,000 last year. In 2008, the group spent SKW6.2m a year each on average and that rose to SKW7.5m last year.