The objective of this study was to find variables related to propensity of compensatory consumption of university students in Korean and Japan. Questionnaires research method was conducted and 477 samples were selected. Korean undergraduates have higher propensity of compensatory consumption for negative feelings than Japan undergraduates. Japan undergraduates have higher propensity of compensatory consumption for positive feelings than Korean undergraduates. Korean undergraduates have a tendency to compensate positive and negative feelings by drinking. Japan undergraduates have a tendency to compensate positive feelings by eating out, and to compensate negative feelings by buying books. In compensatory consumption for positive feelings, Korean undergraduates is influenced by group identity, but Japan undergraduates is influenced by reference group. Propensity of compensatory consumption of Korean undergraduates is mostly influenced by consumption tendency, materialism, group identity, and self-concept. Propensity of compensatory consumption of Japan undergraduates is influenced by consumption tendency, materialism, reference group, and their family income. The strongest predictor of propensity of compensatory consumption of Korean and Japan undergraduates is consumption tendency, followed by materialism.