Consumer competency level of North Korean defectors higher than the general public

-Well adapts to consumption life after living in South Korea for more than 7 years-

  While consumer competency^* level was lower for North Korean defectors than the general public in South Korea, their consumption life satisfaction was higher. Also, consumer competency appeared to improve for those who have been residing in South Korea for a while and had received consumer education.

  * Consumer competency is the knowledge, attitude, and practice of consumers to voice their opinion and take action amid the changing consumption environment.

  The Korea Consumer Agency (www.kca.go.kr) conducted a consumer competency survey* targeting 621 North Korean defectors between the ages of 20 and 40 who scored an average of 54.3 points versus the general public between the ages of 20 and 40 who scored an average of 66.1 points in the 2014 survey.

  * Based on the “2014 Consumer Competency Survey of Korea,” the survey, comprised of 54 categories in 9 areas, was conducted from June 25 ~ July 9, 2015 via a face-to-face interview.

■ Consumer competency lowest in asset and liability management, competency gap widest in consumption life adaptation

  As to the consumer competency level in the nine areas*, North Korean defectors scored the highest in “financial planning” (65.8 points) and “empowerment” (63.1 points) while scoring low in “asset and liability management” (46.0 points), “risk management” (46.9 points), and “information literacy” (47.7 points) which was similar to that of the general public.

  However, North Korean defectors showed lower consumer competency level in all nine areas compared to the general public. The competency gap between Korean defectors and the general public was the widest in “consumption life adaptation” (lower by 20.2 points) followed by “information literacy” (lower by 17.0 points), “risk management” (lower by 14.0 points), and “asset and liability management” (lower by 13.o points).

■ Consumer competency high among North Korean defectors with longer residence time and low among newly-weds

  Consumer competency level increased among North Korean defectors who have been residing in South Korea for long periods (more than 3 years) than those who have been living in South Korea for shorter periods (less than 3 years). In particular, the level of consumer competency among North Korean defectors residing in South Korea for over 7 years was equivalent to 87.9% (58.1 points) of the general public. This implies that long-term policy support is needed to help North Korean defectors easily settle down.

  Also, consumer competency was high among North Korean defectors who enrolled in college or university (20.8% of survey respondents scored 57.4 points). By type of household, consumer competency was low among newly-weds (52.1 points) while high among parents with children (56.2 points). Of note, North Korean defectors who received financial and consumption life education while adapting to life in South Korea displayed high level of consumer competency (56.8 points).

■ Relatively satisfied with consumption life, especially in healthcare service

  Meanwhile, 84.2% of North Korean defectors expressed satisfaction in consumption life in the past year, averaging a score of 67.6 points which was higher than the average score of the general public (62.7 points) based on the “2015 Survey of Consumption Life Indicators in Korea.”

  Among the 10 areas, satisfaction level was the highest in “healthcare service” (73.4 points) followed by “clothing” (72.5 points), “food” (71.9 points), and “transportation and vehicles” (71.8 points), while satisfaction level was low in “housing” (65.7 points), “education” (65.4 points), and “funeral and wedding service” (54.7 points).

■ Biggest difficulty in understanding words and phrases

  As to difficulties in enjoying consumption life, 16.0% of North Korean defectors who participated in the survey said “understanding words and phrases” followed by “not knowing whether advertisements were true” (15.3%), “difficulty in comparing quality” (12.6%), and “fear of frauds and scams” (10.2%). In particular, difficulty in understanding terms and phrases was ranked No.1 in this year’s survey as to No.2 in the 2010 survey* which is attributable to the increasing use of English expressions and emergence of new words in line with the globalization of consumption. Other difficulties included difficulty in understanding contracts, low wage level, and yielding to temptation and buying impulsively.

  * Survey of Consumption Activity and Awareness Level of North Korean Defectors, KCA, June 2010

<Difficulties in Consumption Life of North Korean Defectors>

  However, 64.9% of North Korean defectors who experienced such difficulties did not take any measures and further, 71.3% said they did not know of the 1372 Consumer Counseling Center (nationwide consumer counseling hotline). Accordingly, educational programs are needed to actively promote channels available to help North Korean defectors facing consumer issues as well as to protect their consumer rights and interests.

  Based on the survey results, the KCA plans to undergo projects that can help strengthen consumer competency of North Korean defectors, and to propose policies to relevant government agencies, such as: (i) develop and implement tailored policies to support North Korean defectors depending on period of residence; (ii) develop and disseminate consumer education programs that can help strengthen consumer competency of North Korean defectors; and (iii) establish measures to offer efficient redress for North Korean defectors.