The makings of a new generation

Digital natives, known as the MZ Generation, are making their mark on South Korea

Jan 11, 2024

Original artwork created with the assistance of DALL-E

On a recent trip to South Korea, where I delivered remarks to government and business leaders on the impact of demographic change on social and economic norms, I met up with a former student intern of mine, EunHyeong Kim. During this meal, EunHyeong shared with me that the conventional distinction between Millennials and Generation Z, commonly observed worldwide, is blurred into a singular, cohesive demographic in South Korea, known as "Generation MZ."

The MZ generation encompasses individuals born from the early 1980s to the early 2010s. Millennials are typically those born between the early 1980s and the mid-1990s to early 2000s, while Generation Z includes those born from the mid-1990s to the early 2010s. This demographic is known for its distinct behaviors and preferences, heavily influenced by digital technology, social media, and changing cultural values.

According to KOISRA, a South Korean business consulting firm, MZs account for nearly a third of the total population, or 16,960,000 individuals. In South Korea, as in many parts of the world, generational dynamics play a significant role in shaping society, culture, and the economy, and the rise of the MZ generation is no different. This generation is at the forefront of change, marked by a blend of digital innovation, cultural shifts, and evolving consumer values.

The Makings of a New Generation

Generational behaviors and preferences are largely driven by the circumstances in which they grew up, and the MZ generation is no different.

This generation is considered to be true “digital natives” since they grew up when smartphones, social media, and the internet became integral to daily life. Their digital fluency has transformed communication across South Korea and influenced their engagement with politics, culture, and business. Social media platforms like Instagram, KakaoTalk, and YouTube have become popular and powerful tools for self-expression, activism, and entrepreneurship.

South Korea's MZ generation also came of age with unique economic challenges. Millennials, in particular, have grappled with issues like high youth unemployment rates and the burden of student loan debt. The challenges of the pandemic economy confronted Gen Z during their first years of work, too. These financial pressures have influenced their approach to work, with many MZ individuals seeking freelance, gig, or remote work opportunities.

Additionally, the South Korean housing market, characterized by high prices and limited affordability, has made homeownership a distant dream for many MZs. These economic pressures have shifted priorities, with financial stability and work-life balance becoming central to their aspirations. Many MZs have put off marriage or having children as a result, too.

A Shifting Outlook

Generation MZ is characterized by an acute awareness of social issues, actively participating in dialogues and initiatives surrounding environmental sustainability, social justice, and gender equality. This generation is reshaping traditional societal expectations, often postponing or opting out of conventional milestones like marriage and starting a family, influenced by economic factors and evolving personal values. Their inclination towards individualism and variety in lifestyle choices, coupled with a propensity to critically examine and redefine established norms, is transforming South Korean cultural and social norms.

They also have a global outlook and believe in using “soft power” rather than military force. The widespread popularity of K-pop, Korean cinema, and Korean dramas among international audiences is a testament to the global appeal of South Korean culture. MZs have embraced this soft power and actively spread Korean culture worldwide, contributing to the nation's global influence.

Redefining Consumerism

MZ consumers exhibit distinct behaviors driven by their digital fluency and unique socio-economic circumstances. This demographic is known for their preference for online and mobile shopping, reflecting their comfort with digital platforms. They prioritize transparency and authenticity in brands, aligning their purchasing decisions with their personal values and social causes. Interestingly, their spending habits blend a desire for luxury and unique experiences, also known as "flex consumption,” with practical, cost-effective choices, a trend referred to as "jjantech."

This combination of luxury spending and frugality highlights their complex relationship with consumption, influenced by the current economic landscape and cultural shifts. The MZ generation's consumer behavior is reshaping retail and marketing strategies in South Korea as companies strive to cater to their preferences and values.

MZ’s New Rules for South Korea

South Korea's Generation MZ is not just a demographic label but a vibrant and influential force reshaping the country's social, cultural, and economic landscape. This uber generation, bridging Millennials and Generation Z, embodies a unique blend of digital sophistication, cultural dynamism, and adaptive consumerism. Their experiences, molded by technological advancements and significant economic challenges, have fostered a distinct outlook on life that prioritizes flexibility, individualism, and a balance between luxury and pragmatism. As digital natives, their engagement with technology and social media has transformed communication, business, and activism, making them pivotal players in both domestic and global arenas.

Moreover, Generation MZ's impact extends beyond mere consumer trends or digital habits; it signifies a deeper shift in societal values and norms. Their acute awareness of social and environmental issues, a global perspective, and a redefinition of traditional life milestones indicate a profound evolution in South Korean society. As they navigate a world marked by rapid change and uncertainty, the MZ generation's choices and actions will continue to shape the future of South Korea. Their journey is a testament to the resilience and adaptability of a generation poised to redefine what it means to live, work, and thrive in an interconnected and ever-evolving world.