The word “frugality” has long had a poor reputation as its association with a similar word “stingy” has often bestowed a negative connotation on its meaning.
However, in 2016, the word “frugality” has been rising in importance due to the prolonged economic difficulties that consumers are facing. The Bank of Korea’s consumer sentiment index hit an eight-month low in February, indicating that Korean consumers have become more frugal to adjust to the sluggish economy.
Faced with cold hardship, communities grow tighter and it is what online finance communities dubbed “salty-tech” communities choose to do. “Salty,” is an idiomatic word that describes a stingy person in Korean and when combined with the word, “tech” it brandishes a witty meaning of financial philosophy. These Korean websites that guide its members on living the “simple life” are expanding at a fast rate.
The most symbolic of all online salty-tech communities is on Korean Web portal Daum (cafe.daum.net/mmnix) launched back in 2001 – it is the largest and the oldest among them.
The site welcomes visitors with a page full of lifestyle tips neatly categorized into different sections for different financial needs. Each section is filled with personal anecdotes that spin tales of economic woes and resurrections. The entire website is like a cookbook that shares local recipes for financial diet and healthy savings.
The community started off with its members sharing tips on how to save on city services bills and how to recycle basic necessities. Now, it’s saturated with in-depth information regarding insurance and money-saving technologies.
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Lee Dae-pyo, founder of Daum online community "Salty cafe" and author of "Salty-Tech is Coming" The Korea Herald |
The founder of the community and author of self-help book “Salty-tech is Coming,” Lee Dae-pyo, is the captain steering the ship. Lee revealed his thoughts on the modern meaning of “thrifty consumers” and their main concerns. “In 2016, it’s not about saving items anymore -- consumers have become more strategic and business-like,” he said. “Now, we look at the big picture and focus more on trends that can go viral.”
“Digging into the refrigerator” is an example of a trend that went viral online and also drew the attention of offline media such as MBC and JoongAng Ilbo. It’s a culinary movement that respects the budget of the consumer. It suggests that by following a few simple steps, consumers can prevent wasting money on groceries. There’s an entire chapter dedicated to the movement in “Salty-tech is Coming” -- which is a compilation of the best recollections of the online community.
Other trends reveal that being a frugal consumer is not just about saving money anymore, but about being smart. There are various smartphone apps and websites that feature recreation for free or at low prices. Though these apps, consumers can continue to engage in culture without splurging. Account bookkeeping is recognized as a biblical ritual among all. Members take it to the next level by writing down monthly spending plans before payday to prevent overspending.
When asked about the reason for the hype about such communities, Lee answered, “It’s because online communities provide anonymity. Ironically, this is what allows people be more transparent about their financial problems, unlike offline communities.”
“Because members can be more honest, it enables them to receive more direct help from fellow members.”
Also, the dawn of the tech-savvy age has helped online forums gain momentum. In U.S. a similar online platform called “The Dollar Stretcher” has shown success and upholds the same motives as salty-tech communities in Korea.
As these online venues continue to evolve technologically, their main objective remains to teach consumers how to gain control over their spending.
Lee Dae-pyo ended his interview with an interesting perspective on the goal of such communities. “Finance is a factor of reality -- the main object of these communities is not to limit such sharing online. These ideals need to be shared offline as well, for saving money is a philosophy that should never be looked down upon.”
Whether consumers take these communities with a pinch of salt is up to them, but the catalyst behind their existence are the consumers themselves.
By Jung Min-kyung (
mkj1105@heraldcorp.com)
