Sales at Stores with Less Than 3 Billion KRW in Annual Revenue Rise 8.7% Thanks to Consumption Coupon Effect... Academies and Optical Shops Lead Growth

Significant Sales Growth at Businesses with Annual Sales of 3 Billion KRW or Less
Sales Decline at Large Discount Stores Where Coupons Are Not Accepted

In the first week after the government issued the Livelihood Recovery Consumption Coupon, total card sales increased. The effect was particularly pronounced at businesses in sectors closely tied to everyday life with annual sales of 3 billion KRW or less.

On the 3rd, Cheongnyangni General Market in Dongdaemun-gu, Seoul is bustling with people. Photo by Yonhap News

According to data submitted by eight credit card companies (Shinhan, Samsung, Hyundai, KB Kookmin, Lotte, Hana, Woori, and BC) to Heo Young, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, the combined check and credit card payments at these companies totaled 14.8413 trillion KRW during the week starting from July 22, the day after the Livelihood Recovery Consumption Coupon was distributed (July 21). This represents a 12.9% increase compared to the previous week.

Strong Impact of Consumption Coupons... Sharp Sales Growth at Small and Medium Merchants

When looking at the main sectors where the Livelihood Recovery Consumption Coupon was used, the sales growth rate at businesses with annual sales of 3 billion KRW or less was up to nearly twice as high as that at businesses with sales exceeding 3 billion KRW.

During this period, sales at small and medium merchants with annual sales of 3 billion KRW or less in seven sectors?restaurants, convenience stores, coffee shops, hospitals, private academies, gas stations, and optical shops?increased by 8.7%, from 2.1485 trillion KRW to 2.3346 trillion KRW. In contrast, sales at merchants in the same sectors with annual sales exceeding 3 billion KRW rose by 4.8%, from 1.2949 trillion KRW to 1.3568 trillion KRW.

By sector, sales at restaurants with annual sales of 3 billion KRW or less increased by 7.1%, from 1.0309 trillion KRW to 1.1042 trillion KRW. Meanwhile, sales at restaurants with annual sales exceeding 3 billion KRW rose by 5.7%, from 217.3 billion KRW to 229.7 billion KRW.

At convenience stores, the sales growth rate for stores with annual sales of 3 billion KRW or less was 7.7%, higher than the 5.6% increase seen at large convenience stores.

At coffee shops, the respective sales growth rates were 10.4% and 8.4%. For gas stations, the rates were 11.5% and 6.7%. At optical shops, sales increased by 40.7% and 23.1%, respectively. In most sectors, the sales growth rate at merchants with annual sales of 3 billion KRW or less outpaced that of larger businesses.

On the 3rd, a notice related to the livelihood recovery consumption coupon was posted at Cheongnyangni General Market in Dongdaemun-gu, Seoul. Photo by Yonhap News

Personal Card Payment Amounts by Industry and Business Size (Check + Credit, Excluding Sole Proprietors), Unit: Million KRW. Office of Representative Heo Young, Yonhap News Agency

Large Discount Stores See Sales Drop as Coupon Users Flock Elsewhere

During this period, large discount stores, where the consumption coupon could not be used, saw a decline in sales. As payment demand shifted to places where the coupon was accepted, sales at stores with annual sales of 3 billion KRW or less at large discount stores fell by 10.6% compared to the previous week, while sales at stores with annual sales exceeding 3 billion KRW decreased by 2.6%.

Heo Young stated, "There has been a clear improvement in consumer sentiment before and after the execution of the supplementary budget for people's livelihoods," adding, "We will prepare additional measures to ensure that the results of the consumption coupon contribute to a virtuous cycle of economic recovery and growth."

Within just two weeks of its implementation, over 90% of the population had applied for the Livelihood Recovery Consumption Coupon. According to the Ministry of the Interior and Safety, as of August 5, the coupon had been distributed to 47.36 million people, accounting for 93.6% of the population.

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