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For 33-year-old graduate student Choi, his highest monthly spending aside from food expenses is on generative artificial intelligence (AI). He pays $200 per month for ChatGPT Pro, which provides access to OpenAI's latest and most advanced model.

While the high price initially gave the cash-strapped Ph.D. student pause for thought, he ultimately decided to proceed with the subscription for a worthwhile purpose.

"I tried it out as a test, and it significantly improved my research productivity. I initially planned to cancel it after this month if it wasn't essential, but I decided to continue using it," he told The Korea Times.

Choi is not alone in adding subscription services to his budget.

Seo Min-jeong, a Seoul housewife in her 50s, also spends about 50,000 won ($34.77) per month to LG Electronics to give her mother a massage chair. "It's too expensive to buy, and it's also burdensome to take it when moving house. After using this model for a while, I plan to replace it with a new one before it wears out."

Though Choi and Seo use entirely different services, their spending choices highlight a growing trend: the increasing reliance on subscription-based consumer services.

A subscription service is a business model whereby consumers pay a recurring fee to access products or services for a set period. This model allows consumers to enjoy personalized services without a significant upfront cost, while businesses benefit from a steady revenue stream and improved customer retention.

Newspapers and magazines were among the first to offer subscription services. Yet, with the rise of Netflix, it transformed into a dominant business model.

According to global research firm Gartner, the global market is projected to grow from 804 trillion won in 2020 to about 1,200 trillion won by 2025.

A massage chair from LG Electronics / Courtesy of LG Electronics

This trend is also gaining traction in Korea. In a recent survey conducted by the Korea Chamber of Commerce and Industry (KCCI), 94.8 percent of 1,000 respondents said they have used subscription services.

The most widely used subscription service among Korean consumers is video streaming, with 60.8 percent of respondents saying they use at least one service, such as Netflix or Disney+. This was followed by shopping memberships at 52.4 percent and internet connection services at 45.8 percent when multiple answers were allowed.

What's noticeable is that preferences for subscription services have started to vary by age. According to the KCCI survey, people in their 20s and 30s show the greatest interest in generative AI services, while those in their 40s to 60s favor health and lifestyle appliances, such as massage chairs and skin care devices.

The data indicates a growing reliance on AI for learning and work among people in their 20s and 30s.

KB Kookmin Card also recently reported that transactions for generative AI services nearly tripled in 2024 compared to 2023.

Analysts noted that subscription services are diversifying as the market expands.

"The subscription economy model aligns with recent consumer trends by offering personalized services and the latest products at a reasonable cost, even amid the economic downturn," said Lee Eun-cheol, a director at KCCI's digital innovation and support team.

"While demand was once focused primarily on content like video and music streaming, there is a growing interest in lifestyle-oriented products that enhance everyday convenience, such as health appliances, home electronics and furniture."