Millennials and Gen Z Are Reshaping Korea’s Subscription Economy

In South Korea, the rise of the subscription economy is no longer just a trend—it’s a full-blown cultural shift, driven primarily by the millennial and Gen Z demographics. From coffee and fashion to mental health and English education, young Koreans are opting for monthly membership models over one-time purchases, transforming the way businesses operate and market themselves.

According to a recent report from the Korea Consumer Agency, subscription services in the country have grown by 78% over the past two years. The most significant growth comes from non-traditional sectors: wellness coaching, co-working spaces, curated meal kits, and even dating app memberships.

Why the shift? Experts say it's not just about convenience. “This generation is more focused on experience than ownership,” explains Dr. Lee Hae-jun, a behavioral economist at KAIST. “They value flexibility, personalization, and the ability to exit without long-term commitment.”

A prime example is the education sector. Programs like “Callcom,” an English learning community that blends study, networking, and coaching, offer monthly subscription plans via platforms like Steppay. Members can join without large upfront payments, reducing financial barriers for students and job seekers.

Similarly, subscription cafés and ‘all-you-can-drink’ coffee memberships are thriving in Seoul’s urban centers. For around ₩39,000 a month, customers get unlimited access to selected drinks—ideal for remote workers or students. Fashion brands like MUSINSA and Ably have also launched wardrobe rental services, letting users borrow curated outfits monthly.

Social media has amplified this movement. TikTok influencers share unboxing videos and subscription hacks, creating a culture of exploration and micro-luxury. “It feels like treating myself without guilt,” said 26-year-old subscriber Jung Minseo, who uses three different subscription services, including a journaling app and a skincare box.

Still, consumer groups are raising red flags. Hidden fees, automatic renewals, and unclear cancellation policies have triggered a spike in complaints. In response, the Fair Trade Commission introduced new regulations in July, mandating transparent terms and easy opt-outs.

Despite these concerns, the forecast remains bullish. As economic uncertainty grows and digital lifestyles deepen, the Korean subscription economy seems poised not just to grow—but to redefine how value is experienced.

Date: 2024-09-16

Reporter: 박근홍