Yonhap Feature) Economic downturn changing face of S. Korean society

By Shin Hae-in
SEOUL, Oct. 24 (Yonhap) -- The Galleria Department Store, a luxurious shopping
mall in the heart of affluent southern Seoul, seems unusually empty.
"You're the first costumer," says Lim Mi-ran, a shop assistant at Benefit
Cosmetics. It is 11:30 a.m. on Saturday.
"We used to have several costumers waiting outside the entrance even before the
mall opened," she adds. "Sales have been slowing. The good days may be gone."
Hit hard by the global financial crisis, a growing number of South Koreans appear
to be coming down from their once huge buying binge.
They feel this downturn could be very bad: local businesses are collapsing, and
people are losing their jobs, delaying critical life plans and even hanging
themselves or jumping off balconies rather than face their economic woes. Even
the country's leader, Lee Myung-bak, has admitted that the situation is grim,
comparing it to that of the 1997-98 financial meltdown.
South Korea, Asia's fourth-largest economy, is among the few countries in the
world that has enjoyed rapid economic developments in a short period of time. As
the country underwent rapid modernization and industrialization in the 1970s,
people were overtaken by a mass consumer culture that left them feeling that
"nothing is enough."
Spending soared even among those who couldn't afford it -- credit card debt came
as a second thought only. Seduced by the so-called "well-being" lifestyle, people
plunged into costly workout equipment, organic food, and new and even newer
products that were launched every other month.
All that may be over, even young people say. "Tightening one's belt" is no longer
just for their mothers and grandmothers, who raised more than 10 kids through the
postwar era and recession.
"I feel a change in the social atmosphere," said Lee Ja-young, a 27-year-old
officer worker at Samsung Electronics, one of the best-paying domestic companies.

"The funny thing is, it used to be only our moms who cut back on spending through
the hard times," she added. "But now all my friends and colleagues talk about is
money and how to save it."
Frugality is good to a certain point, but the country could face even worse
circumstances if even rational consumption disappears, experts say.
"If ordinary people zip up their pockets too tightly, retail merchants will die
out and the employment rate will fall, threatening the real economy," said Prof.
Shin Koo-sik of Maryland University's Korea branch. "Too much frugality can also
hurt the economy."
The spreading mood of frugality is only one aspect -- and a relatively optimistic
one -- of the economic downturn. More people fear a "collective depression" here
and what it can lead to.
"I was surprised the other day when I said 'I want to die' and actually meant
it," said a 50-something-year-old taxi driver who was diagnosed with depression
March this year. "My income almost halved this year. I'm not sure how much longer
I can cope with this."
Up to 2.7 percent of South Korea's population of 48 million reportedly suffered
from depression during the first half of this year, according to recent
government data, the number increasing by nearly 35 percent over the last five
years. The sales volume of the antidepressant medication Lexapro also surged by
54 percent this year alone.
Almost 80 percent of suicide cases are triggered by depression, and depressed
patients most frequently point to economic difficulties as the cause of their
illness.
"More than twice as many patients came to see me for depression in the last few
months," said Lee Chang-han, a neurologist at Haengbokchatgi Hospital in Seoul.
"Many of them say the lightness of their pockets makes them want to die."
As recently as 1982, South Korea's suicide rate stood at only 6.8 persons per
100,000, one of the lowest levels in the 30-nation Organization for Economic
Cooperation and Development (OECD). The country now has the highest rate among
OECD members, with about 36 people taking their own lives every day.
"It might actually be worse for Koreans who went through the Asian financial
crisis in the 90s because they know what it can be like," said Prof. Ha Ji-hyun
of Konkuk University. "And while depression used to be very rare among younger
people in their 20s and 30s, more and more of them are suffering from the illness
as they manage their own assets from younger age."
The number of homeless people in Seoul increased by more than 100 over the last
five months, reaching nearly 3,000, according to city data, becoming another
indicator of the deepening economic woes here.
"We believe that up to 80 percent of these homeless people are in need of mental
treatment," said Lee Seung-yun, an official at the Seoul Metropolitan Mental
Health Center. "Many are feeling angry at unspecified individuals, leading them
to commit suicide as well as brutal crimes, such as murder and arson."
The economic slump is also changing the form of families -- in a way that the
traditionally conservative older generation here may not approve of.
Money shortages are pushing more singles to delay tying the knot, as young
married couples have second thoughts about having babies.
A 33-year-old officer worker, Yoon Tae-young, is thinking he might not be able to
walk down the aisle "until he's over 40" in a society where men usually provide
the house in marriage.
"I actually have a girl -- but not the money," he said. "I'm seeing heavy, I mean
really heavy losses from investment in funds. At this rate, I won't be able to
pay for the wedding, let alone get a roof over our heads."
When the Korean Institute for Health and Social Affairs asked 2,000 single men in
their 20s to early 40s why they were single, 34 percent answered, "Because I have
no money."
Fewer babies are born each year as working couples say they just "can't afford it."
"I'm in no hurry," said Jang Do-sook, an official at Samsung Fire and Marine
Insurance, who has been married for six years. "I will not have a baby until I'm
100 percent sure that my husband and I can afford full benefits for the child."
"Full benefits for the child" means not only clothing and food, but also
education at prestigious colleges.
Education has always been the top priority for Korean parents, with over 70
percent of students taking lessons from private tutors after school. Extra
education fees take up a large proportion of the household budget for married
couples with kids, with its national cost totaling over 15 trillion won (US$10.6
billion) each year.
South Korea's fertility rate climbed last year for the second consecutive year to
1.26 births per woman, but it is still far below other advanced countries. The
rate is 1.32 in Japan, 2.10 in the United States, 1.96 in France and 1.84 in
Britain.
The Korean Institute for Health and Social Affairs estimated that at this rate,
the population of Korea will decrease from 49 million at present to 16 million by
2100.
The birthrate might fall even further amid the economic slump, experts fear, as
many stay-at-home-mothers have begun to seek jobs.
Housewife Yoo Myung-ae is among one of them. She started selling water bottle
machines last month.
"My husband is a hard-working man who works from 7 a.m. to 10 p.m., six days a
week. But working hard isn't all it takes these days," she said. "We can barely
pay off bills with what he earns, although we only have one child. Having a
second child is out of the question now."
"I thought I'd have a better reason if I decide to get a job after my child turns
10. Who thought I'd be pushed into it for money?"
hayney@yna.co.kr
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