One Month of Consumption Coupons: Sales Up, But What If It's Only a Temporary Boost?

Sales Surge at Traditional Markets and Restaurants
Some Vendors of Vegetables Remain Skeptical
"Concerns Over Short-Term Effects, Fundamental Solutions Needed"

On the morning of the 25th, about a month after the distribution of livelihood recovery consumption coupons, Yangdong Market in Seo-gu, Gwangju is bustling with customers. Photo by Min Chanki

"Sales have temporarily increased, but what if it's just a short-lived effect?"

On the 25th, at Yangdong Market in Seo-gu, Gwangju.

On this day, about a month after the government began distributing livelihood recovery consumption coupons on July 22, the market was crowded with customers shopping for groceries. Vendors called out to passersby holding shopping bags, saying, "Come over here," and "Are you looking for something?" Shoppers paused to pick up groceries for dinner or were seen buying daily necessities such as plates and clothing.

Most merchants at the market agreed that sales had increased compared to the previous month.

Jung, 51, who has run a butcher shop here for over 10 years, said, "Since the consumption coupons were issued, sales have increased compared to last year. Amid last month's heavy rains and the ongoing heatwave, it felt like much-needed rain during a drought," adding, "When I spoke to customers who were just passing by, they naturally ended up buying meat more frequently."

A customer is purchasing fish at Yangdong Market in Seo-gu, Gwangju on the morning of the 25th, about a month after the distribution of the livelihood recovery consumption coupons. Photo by Min Chanki

However, stores mainly selling items with shorter shelf lives, such as vegetables, reported that the effect of the consumption coupons was minimal.

Kim, 65, who sells vegetables like lettuce, said, "Vegetable store owners in this area have barely benefited from the consumption coupons. I heard that sales have gone mainly to side dish shops, fish shops, and butcher shops," explaining, "Customers tend to look for items they can store for a long time or things they usually avoid because of the price. The customer base for vegetables is fixed and hasn't increased at all."

Sales at convenience stores and similar outlets also increased during the month following the issuance of the consumption coupons.

According to an analysis by the Ministry of the Interior and Safety of where the coupons, distributed via credit and debit cards over two weeks, were spent: 41.4% went to restaurants, 15.4% to supermarkets and groceries, and 9.7% to convenience stores.

The combined sales of the four major convenience store chains from July 22 to August 20 increased by about 8% compared to the same period last year. In residential areas, both the number of visitors and the average spending per person rose by about 10% each.

At convenience stores, sales increased across a variety of items, including alcoholic beverages such as beer, fresh foods like meat products, ready-to-eat meals, daily necessities, and health foods. Sales of alcoholic beverages with long shelf lives increased by at least 10%. At GS25, sales of livestock products (100.9%) and seafood products (114.4%) doubled compared to last year, while at CU, sales of health foods rose by 86.3%.

At Seven Eleven, there were notable increases in sales of ready-to-eat meals (60%), frozen meat (40%), and premium ice cream (20%). At Emart24, sales of tofu and bean sprouts (47%), as well as refrigerated soups, stews, and hot pots (46%), saw significant growth.

A convenience store owner in Hwajeong-dong said, "Since this is a neighborhood commercial district, there are many single-person households. Sales of lunchboxes and alcoholic beverages have increased," adding, "Although the increase isn't huge, I do feel there has been some effect from the consumption coupons."

However, some expressed concern that the increase in sales might be only a temporary phenomenon resulting from the distribution of the consumption coupons.

Kim, 28, who runs a cafe in Ssangchon-dong, Seo-gu, said, "It's nice to see more customers, but I'm worried that things will become quiet again once the consumption coupons are used up," emphasizing, "With prices continuing to rise, we need solutions for the most challenging issues faced by small business owners, such as distribution and rent, rather than one-off benefits."

Meanwhile, both the first round of consumption coupons and the second round, scheduled from September to the end of October, have a usage deadline of November 30. The government is preparing for the second distribution next month.