Gyeonggi-do Sees 40% Sales Increase at Disaster Basic Income Partner Stores

[Asia Economy (Suwon) = Reporter Lee Young-gyu] After the disaster basic income (100,000 KRW per person) was distributed, sales at affiliated stores in Gyeonggi Province increased by nearly 40% compared to the previous year.

According to an analysis by the Gyeonggi Research Institute based on BC Card sales data on the effect of the disaster basic income, assuming sales in the same period last year as 100%, sales at affiliated stores increased by an average of 39.7% over six weeks, with ▲118.2% in the 15th week (April 6?12), when the disaster basic income distribution began, ▲140% in the 17th week (April 20?26), and ▲149% in the 20th week (May 11?17).

Conversely, non-affiliated stores saw a decrease, starting at 85% in the 15th week (April 6?12) and 87% in the 20th week (May 11?17), averaging an 11.5% decline over the same six-week period.

During the same period, sales at BC Card affiliated stores in the province increased by an average of 6 percentage points compared to the same period last year.

Card sales recorded 97% in the 15th week (April 6?12), when the province began distributing the disaster basic income, then rose to 102% in the 16th week, 108% in the 17th week, 109% in the 18th week, 114% in the 19th week, and 106% in the 20th week (May 11?17), showing an upward trend.

The institute also estimated through a fixed effects model how much the sales growth rate of all credit card affiliated stores would increase if the disaster basic income amount increased by 10,000 KRW per person, finding it would rise by 4.3 percentage points.

Using the same method, the institute estimated that if the disaster basic income amount increased by 10,000 KRW per person, credit card sales at local currency affiliated stores would increase by 10.4 percentage points.

A provincial official stated, "Through this analysis, we confirmed that the disaster basic income had a real effect on stimulating consumption and was especially helpful to small business owners."

Meanwhile, Gyeonggi Province submitted a budget proposal worth 10.3685 trillion KRW to the government on the 29th of last month, requesting an additional emergency disaster relief fund of 200,000 KRW per citizen.

Gyeonggi Governor Lee Jae-myung recently said in a media interview, “Even if COVID-19 ends, the economy is likely to worsen for a considerable period, so naturally, the disaster basic income should be distributed at least two or three more times.” He added, “To facilitate smooth economic circulation in the most efficient way, demand should be strengthened rather than supply. Supporting the disaster basic income two to three times is much more helpful.”

This content was produced with the assistance of AI translation services.