Study shows Gen Z would pay more for ESG-friendly brands

A new trend among young people in South Korea --the so-called Gen Zs.

They say they would purchase products made by socially responsible businesses even if they cost them more.

Our Kim Do-yeon tells us more.

As ESG practices become more widespread in Korea's economy and society, so-called "value-based consumption"—making purchasing decisions based on personal beliefs and values—is emerging as a key consumer trend among Gen Z.

According to a survey released on Wednesday by the Korea Chamber of Commerce and Industry, which polled 350 people aged 17 to 28 nationwide on perceptions of ESG management and consumption trends, 66-point-9 percent of respondents said they would "choose products from companies practicing ESG, even if they are slightly more expensive."

This suggests ESG efforts are having a direct impact on brand preference and purchase decisions.

But, experts say it's always important to continue monitoring companies.

"Some companies do a good job with ESG management and even obtain certification for their efforts. However, there are also cases where companies receive such certification but still engage in problematic practices. That's why it's important for consumers to look closely and make informed judgments about the companies they support."

The survey also reflected this.

It found that Gen Z is quick to boycott companies involved in social controversies or ethical misconduct.

More than six in 10 respondents said they had "stopped purchasing from a company due to unethical behavior or negative ESG-related issues."

Young people are also highly sensitive to the authenticity of corporate ESG efforts.

In particular, 65-point-4 percent of respondents expressed concern over the issue of "greenwashing."

This highlights the risk companies face of being shunned by young consumers if their ESG activities are perceived as mere marketing tactics lacking genuine commitment.

Kim Do-yeon, Arirang News.