The Children's Day landscape in Korea is no longer what it used to be. A widening gap is emerging between households enriched by the semiconductor boom and those forced to cut spending amid high inflation, with the disparity now clearly visible in the gifts children receive.
"1.2 Million Won vs. 50,000 Won"… Children's Day Polarization
Lee, 47, who works at SK hynix's (000660.KS) Icheon plant in Gyeonggi Province, gave his son an electric skateboard and a tablet PC for Children's Day. The total cost exceeded 1.2 million won ($870).
"My wallet situation has been decent recently, so I didn't want to cut back on spending for my child," Lee said. "The atmosphere among those around me is also, 'It's okay to spend a bit more this time.'"
The situation is similar for employees in Samsung Electronics' (005930.KS) semiconductor division. Park, 29, said, "My spending capacity has grown since the performance bonus," adding that he set this year's Children's Day gift budget at 400,000 won, roughly double the usual amount.
By contrast, households facing tighter budgets are cutting back.
Lee, 40, a nutrition teacher at a Seoul elementary school, capped her son's gift budget at 50,000 won. Another office worker, Lee, 29, is considering a 3,000-won slime toy as a gift for her nephew.
The gap is also visible on secondhand trading platforms. The same children's electric ride-on car is traded for 90,000 won in Seoul but 300,000 won in Dongtan, where a Samsung Electronics plant is located.
Average 95,000 Won… 'Ten Pocket' Phenomenon Emerges
Overall, Children's Day gift spending has been steadily rising.
A survey of 622 parents by English education company YBM Sisa released Sunday showed that the average expected spending on Children's Day gifts this year was 95,000 won. That is nearly double the level of a decade ago, when the figure stood at 49,000 won.
Some 96% of respondents said they planned to prepare Children's Day gifts this year, indicating that holiday spending itself is being maintained regardless of economic conditions. The issue, however, is the cost burden.
Of the respondents, 67.2% said they planned to receive financial support for gift costs from grandparents or other relatives. As a spending structure that parents alone cannot shoulder takes shape, the "ten pocket" phenomenon — in which multiple wallets open simultaneously for a single child — is becoming more pronounced.
This trend is also linked to Korea's low birth rate. Analysts say that while the number of children has decreased, the amount invested in each child has grown, giving Children's Day gifts a character of "concentrated investment-style consumption."
Clothes and Stocks Replace Toys… Gifts Turn More Practical
The nature of the gifts is also changing.
While toys and game consoles dominated in the past, clothing and accessories took the top spot this year at 72.7%. Toys slipped to 44.4%, followed by sports and leisure items such as bicycles at 34.2%.
The rise of financial assets is particularly notable.
The share of respondents considering financial products such as cash and stocks as gifts reached 30.8%, higher than the 30.0% considering game consoles.
Investment by minors is also rapidly increasing. According to Shinhan Investment & Securities, the number of accounts opened by minors in the first quarter of this year jumped 272% year-on-year. Domestic stocks accounted for about 52% and overseas stocks about 17% of holdings, with investments concentrated in large-cap names such as Samsung Electronics, SK hynix and S&P 500 ETFs.
Regulatory changes, including the approval of non-face-to-face account openings, are supporting this trend. As parents can more easily open accounts in their children's names, the character of Children's Day gifts is expanding from "consumption" to "asset formation."
"A Gap Revealed in the Classroom"… Children Feel It Too
The problem is that this gap is transmitted directly to children. Experts say the consumption gap created when an industry-specific boom benefits only certain households could have a negative impact on children's emotions and development over the long term.
Teachers on the ground say, "Children compare trips and gifts with one another and feel a sense of relative deprivation."
Ham In-hee, professor emeritus of sociology at Ewha Womans University, said, "The gap in opportunities experienced in childhood can lead to class consciousness," adding, "The frustration felt at that time can affect children well into adulthood."
She also stressed, "Amid worsening income inequality, careful consideration at educational sites is needed."
