South Korea has seen a significant decline in its once-notorious drinking culture, with alcohol consumption dropping by 12% from its 2015 peak. The shift is attributed to various factors, including the introduction of an anti-graft law and the rise of a health-conscious younger generation. This cultural transformation towards moderation is having a significant impact on businesses and the economy.
South Korea has seen a significant decline in its once-notorious drinking culture. According to recent statistics, alcohol consumption in the country has dropped by 12% from its 2015 peak, which is the second fastest rate of decline among Organization for Economic Co-operation and Development (OECD) nations.
Several factors have contributed to this shift in South Korea’s drinking culture. One key factor is the introduction of an anti-graft law in 2016, which placed caps on meal expenses for public officials to weed out corruption. This has led to a decrease in the number of after-work drinking sessions, known as \”hoesik\”.
The rise of a health-conscious younger generation across the region is another key factor contributing to this shift. In neighboring Japan, increased health awareness and flexible working styles brought about by the pandemic have led to a decline in alcohol consumption.
At home, an increasing number of women have started to complain about hoesik due to its impact on childcare and the risk of sexual harassment. This has led to a change in social norms, with younger and more outspoken women colleagues influencing the workplace culture.
The decline in drinking culture is having a significant impact on businesses and the economy. The number of Noraebangs (singing rooms) has decreased by 11%, while retail sales have reached a record low. This highlights a bigger problem for policymakers: how to address a disparity between solid exports and weak domestic consumption.
The decline in alcohol consumption has had significant impacts on businesses and the economy:
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The number of Noraebangs has decreased significantly, with 3,768 closures between 2020 and July 2024.
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Retail sales have declined, with consumers opting for convenience stores and takeaways instead of dining out.
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Small businesses, such as mom-and-pop beer halls, are struggling to stay afloat due to decreased demand.
The decline in alcohol consumption presents policy challenges:
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Policymakers must address the disparity between solid exports and weak domestic consumption.
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The Bank of Korea is seeking to engineer a soft landing for the economy, but weaker domestic spending complicates this process.
