Daejeon, Disaster Relief Fund Payment Shows Clear 'Consumption Increase Effect'

[Asia Economy (Daejeon) Reporter Jeong Il-woong] An analysis has revealed that disaster relief funds in the Daejeon area led to an additional spending increase of about 14% to 18%.

On the 15th, the Daejeon Sejong Institute announced that it obtained these results by conducting a survey of 1,000 Daejeon citizens recently.

According to the survey, the amount additionally spent by Daejeon citizens after receiving disaster relief funds in May last year was estimated to be 14.9% to 18.9% of the disaster relief funds.

This means that when receiving 1 million KRW in disaster relief funds, an additional 149,000 KRW to 189,000 KRW was consumed.

The largest spending categories were food, clothing, and daily necessities (44.8% of the total). Survey participants also responded that they spent an additional 5% to 10% on items they had not originally planned to purchase.

This implies that, in addition to the unexpectedly received disaster relief funds, unplanned consumption occurred.

Regarding spending status by income distribution, it was also found that the consumption increase effect was significant among low-income groups.

Meanwhile, the Daejeon Sejong Institute estimates that the consumption increase effect of the first disaster relief funds amounting to 397.7 billion KRW distributed in Daejeon will reach a total of 59.3 billion KRW to 75.2 billion KRW.

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