Last autumn, Jina Kim and two other friends indulged themselves in a two-night stay at Ananti at Busan Cove, which is an upscale hotel located within South Korean. The resort has infinity pools, spas, restaurants, private coastal walk and beach area as well as a 4,600-meter “I don’t know how to explain that I was not worried about where the money would come from because we had spent more than ten years saving this up in our gyemoim,” she said.
The formation of gyemoim can help people split travel expenses equally among their buddies or relatives who may have different budgets thereby making it possible for everyone to go on the trip. “To be honest if we didn’t form the gyemoim that trip would have been unthinkable,” added Jina Kim. “It was too expensive.”
Collective financial planning goes way back in many parts of the world. “In fact even outside South Korean” says Euncheol Shin, Professor of Economics in Seoul University, “it’s actually not unique.” Initially there were no financial institutions so this method came up while people tried to find ways of borrowing some money.
Each member contributes what are essentially “club dues” (typically $10–$50 per month—depending on group size) towards future spending when balance gets high enough. In 2014; having met at a social club just over a year earlier; Kim along with her two friends first formed gyemoim. The three went to separate universities but hoped that through gyemoim they could always see each other.
At first they agreed to pay KRW15k (USD13) every month each. They saved more than KRW3m ($2200) over the next 10 years before deciding on a vacation together at Ananti Resort by spending that sum again. However, despite their busy schedules with work and family obligations after becoming adult-aged persons, they still were close friends and the gyemoim was one reason why. “By doing it, we could just keep in touch without worrying about money,” explained Kim.
Gyemoim groups can work in South Korean due to the country’s social interactions and a sense of trust among people living there. In Seoul, you could walk into a coffee shop and just leave your bag.
The practice of forming such groups is so widespread in South Korean that one bank is adopting it. KakaoBank has introduced gyemoim account where friends may hold a common bank account controlled by one particular person. Some such groups however prefer to have all their funds under the stewardship of one member. But not all gyemoims go on indefinitely; people grow apart or fall out; others get try while some newcomers want to participate as well. After that, it remains for members of the community to make their own decision concerning this issue. For the group members, they should have similar interests according to Kim.
