Government Emergency Disaster Relief Funds Spent Most at Restaurants and Marts

64% of Spending Occurs at Small and Medium Franchise Stores, 26% at Micro Franchise Stores
Local Commercial Districts and Traditional Markets See 20% Sales Increase

On the 22nd, an emergency disaster relief fund usage notice was posted at Tongin Market in Jongno-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Jo In-kyung] The emergency disaster relief funds distributed to all citizens nationwide in response to the COVID-19 pandemic were primarily used at restaurants and supermarkets, it has been revealed. Sales in local commercial districts and traditional markets also increased.

The Ministry of the Interior and Safety announced on the 10th that it analyzed the usage data of emergency disaster relief funds charged to credit and debit cards from eight card companies (KB Kookmin, NongHyup, Lotte, BC, Samsung, Shinhan, Hana, Hyundai) from the 11th to the 31st of last month, and found these results.

During this period, out of the 9.5647 trillion KRW in emergency disaster relief funds issued via credit and debit cards, 59.3%, or 5.6763 trillion KRW, was used.

By industry, 24.8% of the total emergency disaster relief fund usage, amounting to 1.4042 trillion KRW, was spent at restaurants, and 24.2%, or 1.3772 trillion KRW, was used at supermarkets and grocery stores, showing the highest proportions. This was followed by hospitals and pharmacies at 10.4% (590.4 billion KRW), gas stations at 5.4% (304.9 billion KRW), and clothing and accessories at 5.3% (300.3 billion KRW).

In particular, compared to the first week of May before the emergency disaster relief funds were distributed, the sales growth rate in the fourth week was highest in eyeglasses (66.2%), hospitals and pharmacies (63.8%), academies (37.9%), bookstores (34.9%), and health and beauty services (29.4%).

Looking at the scale of affiliated stores, about 64% of the emergency disaster relief funds used via credit and debit cards, totaling 3.62 trillion KRW, were spent at small and medium-sized credit card affiliated stores (annual sales of 3 billion KRW or less), and among these, about 26%, or 1.4693 trillion KRW, was used at micro-sized stores (annual sales of 300 million KRW or less).

Overall, the total sales of affiliated stores of the eight card companies increased by about 21.2% in the fourth week of May compared to the first week, and by about 26.7% compared to the same period last year.

Sales at traditional markets through the eight card companies reached 324.3 billion KRW in the fourth week of May, showing an increase of about 20% compared to 270.5 billion KRW in the first week of May.

Yoon Jong-in, Vice Minister of the Ministry of the Interior and Safety, said, "We will continuously monitor the progress to ensure that the emergency disaster relief funds provide real help to citizens' livelihoods and the local economy, and we will also carry out consumption promotion campaigns so that the emergency disaster relief funds are fully spent by the end of August."

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