Annual Average Revenue of Sales Outlets Around 31 Million KRW
Some 'Myeongdang' Sales Outlets May Reach Up to 1 Billion KRW
On the 6th, a flood of first-prize Lotto winners emerged at a convenience store in Suncheon, Jeollanam-do. In the 1114th Lotto draw, there were 17 first-prize winners, and among them, 5 came from the Alibi Geumdang branch in Suncheon, Jeollanam-do. These were manual wins. It appears that one person bought five tickets with the same numbers. The lucky winner will receive a huge sum amounting to about 7.9 billion KRW. So, how much does the Lotto store owner earn? On the internet, it is not hard to find posts claiming that 'Lotto stores earn more than the Lotto winners.' But what is the reality?
There is a place where the footsteps of citizens seeking an escape from their harsh lives come to rest. It is the Lotto hotspot. On January 21, 2019, citizens were purchasing hopeful Lotto tickets at a Lotto hotspot in Nowon-gu, Seoul.
According to data released on the 7th by the lottery operator Donghaeng Lottery, Lotto retailers receive 5% of the sales amount for each Lotto ticket sold. Selling one Lotto game worth 1,000 KRW earns the retailer 50 KRW. There is no regulation that allows retailers to take a portion of the Lotto prize money as a commission. Whether the winner receives 1 billion KRW or 7.9 billion KRW, it has no relation to the retailer. In other words, Lotto winnings and retailers are completely unrelated. However, the story changes if a store becomes famous as a 'Lotto hot spot.' In some cases, the income from sales (5% of sales) can exceed the Lotto prize money.
In 2021, the total sales revenue of all lottery retailers was 5.0398 trillion KRW, which averages to an annual commission income of 31.02 million KRW per store. Many opinions suggest that after deducting rent and labor costs, there is little profit left. This is why some people give up their contracts even after struggling to secure a retail license. However, some retailers actually earn profits comparable to a first-prize Lotto winner. The Spa lottery store in Sangye-dong, Nowon-gu, Seoul, is famous for producing the most first-prize Lotto winners nationwide. As rumors spread that it was a lucky store where first prizes frequently appeared, customers flocked in. It is reported that weekly sales reach 400 million KRW. Assuming monthly sales of 1.6 billion KRW worth of Lotto tickets, the monthly sales commission alone would be 88 million KRW, exceeding 1 billion KRW annually.
However, not everyone can operate a Lotto retail store. First, applicants must hold South Korean nationality. Also, only those aged 19 or older can apply. At the time of application, applicants must be either priority contract candidates or belong to the lower-income bracket. This is because 90% of contracts are allocated to priority candidates and 10% to the lower-income group. Priority contract candidates include people with disabilities, basic livelihood security recipients, heads of single-parent families, independence activists, and national merit recipients. The lower-income group refers to those who do not qualify as basic livelihood security recipients but whose recognized income is below 50% of the median income. Median income means the income of the household in the middle when all households are lined up by income.
However, even priority contract candidates or lower-income individuals may be ineligible to apply. Those who have previously given up or terminated an online lottery retail contract, or have had a contract cancellation, cannot apply. Temporary, fixed-term, and prospective appointees, including public officials prohibited from holding concurrent positions, are also ineligible. Employees of public institutions, corporate business owners, and those currently under bankruptcy declaration or credit recovery are also restricted from applying.
If you meet the qualifications, you can now challenge the Lotto retailer license. Donghaeng Lottery is currently recruiting new Lotto retailers for 2024. A total of 1,463 people will be selected. Selection will be based on regional population, sales volume, and market size across 160 cities, counties, and districts nationwide. The application deadline is April 23rd at 6 PM. The selection results can be checked on the Donghaeng Lottery website after 6 PM on April 24th. Final contract candidates must pass document submission and screening processes to obtain retailer qualifications. The screening period is from May 2nd to May 31st.
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