[Report] Disaster Relief Fund Effect 'Proven'... Real Economy Recovery Trend on Mokpo Line

'Daemok' Traditional Market Holds Strong, Relieving Parents' Burden for the New Semester

Bustling customers inside Cheongho Market in full swing (Photo by Seunghyun Jeong)

Effect of Disaster Relief Funds... Traditional Markets Breathe New Life

[Asia Economy Honam Reporting Headquarters, Reporter Jeong Seunghyun] Early in the morning, Cheongho Market in Seokhyeon-dong, Mokpo, is bustling with customers. Plastic bags in the hands of customers have increased along every alley of the market, and for the first time in a long while, merchants' smiles have blossomed.

Over the past year, sales had declined by more than 30% due to the impact of COVID-19, and even compared to the trend during last Chuseok, there has been a significant change. According to the market merchants here, the real economy has recovered to a level comparable to the pre-COVID period.

Kim Hyun-il, CEO of Baekje Hanwoo and a merchant at Cheongho Market, evaluated, "This Lunar New Year, sales reached the average level of past years, and contrary to expectations that sales would drastically decrease due to COVID-19, customer visits continued, leading to a better-than-expected Lunar New Year peak season."

This process is interpreted as a direct reflection of the real economy of the recent disaster relief funds amounting to approximately 23.19 billion KRW distributed to all citizens by Mokpo City.

In particular, the fact that among small and medium-sized cities, Mokpo ranks high in population density nationwide, and the city's concentrated commercial structure supports the local economic base, allowing the virtuous cycle effect to be felt quickly.

Choi Ki-dong, former chairman of the Mokpo City Council, who visits the Mokpo Fisheries Cooperative auction market without fail every dawn for years, said, "Since the local community exists only when the common people's economy thrives, the proper standard of administration for local issues must start with a humble attitude," and encouraged, "I firmly believe that the efforts of merchants who do not forget to smile even in difficult situations will overcome the barriers of COVID-19."

New Semester at HELL... Saving Families and Reviving the Economy

March, the new semester, is a financially challenging time for parents with children. Therefore, the response of parents to the disaster relief funds distributed from early February by Mokpo City has been mostly positive.

Kim Sang-su (Sangdong, 47), who has two university student children, received a total of 400,000 KRW in support for his entire family, including himself. Kim said, "After struggling to pay my children's university tuition, I was worried about living expenses, but my eldest daughter said, 'Since we received the disaster relief funds, you don't have to give me allowance this month,' which made me feel both grateful and somewhat sorry."

In particular, the alleviation of consumption contraction ahead of the new semester due to the disaster relief funds has had a significant ripple effect on revitalizing the local economy. Additionally, consumption patterns for popular new semester items such as clothing, daily necessities, and home appliances are rapidly recovering.

Changes and Adaptations Due to COVID-19

With the enforcement of gathering restrictions for groups of five or more due to COVID-19, the liquor and dining industries have undergone significant changes. According to a representative from HiteJinro Mokpo branch, "While sales of commercial-use liquor, which accounted for a large portion of the local liquor market, have decreased, sales of home-use liquor have shown high volumes."

Especially with the increase in home-use liquor sales, HiteJinro Mokpo branch is conducting social contribution events such as the 'Good Deeds Project' together with 'Mokpo Moms' Chat Room,' where citizens who use their products post certification photos can donate to local community facilities.

Local dining businesses, which mainly relied on in-store sales, are also implementing delivery services or introducing various self-help measures such as developing new menus and lowering prices to attract customers whose visits have been interrupted due to COVID-19.

Kim Kyung-hoon, CEO of 'Daebakju,' a native dried seafood and hop franchise in Mokpo, increased customer satisfaction last year by significantly lowering prices across the entire menu and developing products aligned with trends to overcome sales declines caused by COVID-19.

CEO Kim explained, "It is true that sales dropped due to the reduction of large group dining culture caused by the gathering restrictions for five or more people. On the other hand, small groups of two to three customers increased, so we introduced a price reduction policy reflecting the needs of customers who felt burdened by the prices of side dishes designed for groups of four or more."

Meanwhile, the Mokpo Small Business Revival Movement Headquarters (Chairman Lee Ki-jung) plans to launch the 'Mokpo Delivery App' early next month. While existing delivery apps charge high commissions of up to 13%, this app is expected to reduce the burden on local small business owners with a low commission rate in the 3% range.

Chairman Lee emphasized, "If the current commission rate of 13% is reduced to around 3% and used for profit generation and product improvement for small business owners, customer satisfaction will naturally increase," adding, "Local competitiveness must be created by local residents."

According to Mokpo City, as of 6 p.m. on the 16th, 188,318 people applied for the disaster relief funds of 100,000 KRW distributed to all citizens, and 173,592 people have received the payment.

The application rate is 84.2%, and the payment rate is 77.6% compared to the total eligible population of 223,617.

Since senior officials of grade 5 and above and officials of grade 6 and below in Mokpo City voluntarily participate in donations through non-receipt, 100% payment of disaster relief funds to all citizens is not expected. The city plans to use the donated disaster relief funds for distributing masks to vulnerable groups, purchasing quarantine supplies, or reinvesting in current projects.

A city official stated, "We plan to encourage applications from groups or areas with low application rates during the remaining period. We ask for accurate account number entries for smooth payments," and expressed gratitude to "all citizens from various sectors who participate in donations."