The growing number of single households in Korea looks set to buoy stocks related to their lifestyles, according to a report by NH Investment & Securities.
According to a 2015 census by Statistics Korea released earlier this week, the percentage of one-person households rose to 27.2 percent last year, surpassing households with two or more individuals for the first time. Such single households are projected to account for 34 percent of all households by 2035.
“Such growth is expected to bring about change not only in the housing market but also in the retail industry as those single consumers would be leading consumption,” said Han Seul-ki, an analyst at the wealth management division of NH Investment & Securities. “For instance, those who live alone prefer shopping for groceries at nearby convenience stores than large distant retailers.”
Eating and traveling alone would also affect related markets, Han added.
The analyst mentioned GS Retail and BGF Retail as retailers that would benefit from this trend, and Shinsegae Food, CJ Freshway and Lotte Food as promising F&B stocks. CJ E&M, CJ CGV, Hana Tour and Mode Tour were picked among leisure stocks.
“Since they prefer home appliances and furniture that are more practical and versatile in terms of efficient space, firms such as Hanssem, Hyundai Livart, Cuckoo Electronics and Coway are also expected to benefit from the new trend.”
By Song Su-hyun (firstname.lastname@example.org)