With rapidly-changing consumption environment as well as increased uncertainty of consumption life, importance of consumer competence is more emphasized than ever before. The Korea Consumer Agency (President: Kim Young-seen, www.kca.go.kr) assessed consumer capability targeting 1,000 men and women in their 20’s to 60’s nationwide (on the face-to-face interview survey basis) in order to come up with an effective and scientific improvement plan based on diagnosis of consumer competence of our citizens (during Oct. 5^th ~ 22^nd, 2010) and found that our citizens got consumer competence of 61.5 on average.  

The consumer competence means potential and practical capability required for consumers to live a smart and sustainable consumption life in today’s fast-paced consumption environment and is largely consisted of the three basic finance, transaction, and civic capability with subordinate capability (sub-categorized into nine).

Among the three basic capabilities, financial capability was found to be the lowest with 59.1 with transaction capability and civic capability at 62.1 and 63.1, respectively. In particular, sub-categorized financial planning capability, asset and debt managing capability, and risk preparing capability of financial capability were found to be all low at 57.1, 59.7, and 61.3, respectively, confirming urgency for consumer empowerment in financial area.

For transaction competence, capability to use transactions and settle disputes and purchase decision-making capability were comparatively high as seen in 63.3 and 62.5, respectively, whereas capability to understand and utilize consumer information was low at 60.9. Meanwhile, for civic capability, capability to assert consumer rights and adapt to a consumer society were high at 65.0 and 63.2, respectively, while capability to actively accept consumer responsibility remained low at 61.1. This means that civic awareness of consumer rights and capability to use transaction has reached a certain level. Yet, there is much room for improvement for consumers’ capability to utilize consumer information for smart choice and consumption with social responsibility such as green consumption.

Meanwhile, the survey showed that there were still a number of citizens who do not know well about financial transaction delinquency, consumer dispute resolution standard, Hazard Analysis Critical Control Point (HACCP) System, and Carbon Footprint. Accordingly, the KCA pointed out that a careful and thorough review should be preceded based on full consideration about consumers’ ability to embrace new ideas and concept before enforcement of a variety of certification and labeling systems.

The Agency is going to provide a simple self-diagnosis sheet for consumer competence on its website. This self diagnosis checklist will enable consumers to clarify their consumer competence easily.

Supplementary coverage

Baek, Byung-seong, Head of Policy Development Team, Consumer Policy Research Office (☎ 02-3460-3291)

Bae, Soon-young, Research Fellow of Policy Development Team, Consumer Policy Research Office (☎ 02-3460-3391)