Daejeon, August Credit Card Sales Decline...Analyzed as Impact of Gwanghwamun Rally

Comparison graph of credit card sales in Daejeon area from February to August this year versus February to August 2019. Provided by Daejeon City

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Last month, credit card sales in the Daejeon area’s commercial districts decreased compared to the previous year. The decline in sales became noticeable from the time when COVID-19 cases related to the Gwanghwamun rally began to increase.

According to the analysis of KB credit card sales big data by Daejeon City on the 25th, last month’s total sales across all local industries amounted to 585.79 billion KRW, down 105.11 billion KRW (15.2%) from the same period last year (690.91 billion KRW).

In the sales fluctuation trend, sales on Monday the 17th last month increased compared to other Mondays of the same month (3rd, 10th, 24th). This was attributed to the consumption stimulation effect from the designation of a temporary holiday. Additionally, the city interpreted that the early-month lull in confirmed cases positively influenced the sales increase.

However, this effect did not last long. Around the 15th of last month, as numerous confirmed cases related to the Gwanghwamun rally occurred locally (32 cases from the 21st to 23rd, etc.), sales began to sharply decline again.

By industry, significant sales decreases were observed in 26 sectors including general restaurants, supermarkets and convenience stores, academies, cafes and bakeries, fuel stations, and entertainment. Conversely, 12 sectors such as food and beverage products, construction-related businesses, electronics, and automobile maintenance and repair showed slight sales increases compared to last year. Thus, sales performance varied by industry.

Regarding the five autonomous districts of Daejeon, sales decreased in all districts. The largest sales decrease by amount was in Seo-gu with 40.91 billion KRW, while Jung-gu had the highest decrease rate at 18.6%. Dong-gu also experienced a sales decline last month, continuing a seven-month consecutive downward trend in sales since the occurrence of confirmed cases.

Moon Chang-yong, Director of the Science and Industry Bureau of Daejeon City, stated, “As confirmed cases related to the Gwanghwamun rally increased nationwide, local commercial district sales have turned downward. The city will strive to establish and implement customized policies for small business owners by integrating the ongoing comprehensive survey of small business owners with credit card sales data.”