MOIS: "Economic Indicators Improving"
88% of Coupons Issued via Credit/Debit Cards Already Used
Restaurants Account for 40.3% of Usage
Supermarkets and Groceries (15.9%), Convenience Stores (9.5%)
Second Round to Provide Coupons to 90% of the Population Starting on the 22nd
Approximately two-thirds of the first round of livelihood recovery consumption coupons were used at restaurants, supermarkets and grocery stores, and convenience stores. The Ministry of the Interior and Safety announced that after the distribution of the consumption coupons, sales for small businesses and traditional markets increased, and key economic indicators such as consumer sentiment also improved.
On September 18, the Ministry of the Interior and Safety stated that, as of the application deadline on September 12, 99.0% of all eligible recipients-approximately 50.08 million people-had applied for the first round of livelihood recovery consumption coupons distributed to the entire population, with a total of 9.0693 trillion won disbursed.
As of midnight on September 14, 5.2991 trillion won (88.1%) of the 6.0177 trillion won in consumption coupons issued via credit and debit cards had already been used. By sector, restaurants accounted for the highest share at 40.3%, followed by supermarkets and groceries (15.9%), convenience stores (9.5%), hospitals and pharmacies (9.1%), private educational institutes (4.1%), and clothing and miscellaneous goods (3.6%).
Consumer Sentiment Index Hits Highest Level in 7 Years and 7 Months
The Ministry of the Interior and Safety reported that economic indicators, including consumer sentiment, improved following the distribution of the consumption coupons. The Consumer Sentiment Index from the Bank of Korea reached 110.8 in July 2021, when the coupon program began, marking the highest level since the start of the program, and rose further to 111.4 in August, setting a new record for the past 7 years and 7 months.
Additionally, in the 'Small Business Market Business Survey Index (BSI)' released by the Ministry of SMEs and Startups and the Small Enterprise and Market Service, the August BSI for small businesses and traditional markets reached 72.3 and 75.6, respectively-the highest levels this year. The September BSI outlook also reached a yearly high, at 88.3 for small businesses and 85.5 for traditional markets.
According to Statistics Korea's July industrial activity trends, the retail sales index, which reflects the volume of goods consumed, increased by 2.5% compared to June, marking the largest increase in 29 months.
Sales for small businesses and traditional markets also rose. In a joint survey on the effectiveness of the livelihood recovery consumption coupons conducted by the Korea Federation of Micro Enterprises and the Korea Federation of Merchants, 55.8% of respondents said their sales increased after the coupon distribution, with more than half of those (51%) reporting sales growth of 10-30%.
Cases of Donation and Welfare Expansion Using Consumption Coupons Continue
Beyond economic effects, there have also been cases of using the consumption coupons as an opportunity to promote sharing and expand welfare. In various regions including Sejong, Suwon in Gyeonggi Province, and Boryeong and Hongseong in South Chungcheong Province, items such as coffee, snacks, and daily necessities purchased with the coupons were delivered to fire stations or orphanages.
Local governments linked welfare services to the 'visiting application' process, which targeted vulnerable groups during the coupon distribution. Nationwide, from July 21 to September 12, there were a total of approximately 402,000 cases of 'visiting applications.' In Guri, the visiting application was combined with a nurse visit health support service to provide health checks, while in Bucheon, the process of visiting vulnerable households was used to assess living conditions and provide support for improvements such as cleaning and wallpapering.
Yoon Hojoong, Minister of the Interior and Safety, stated, "The consumption coupons are not only revitalizing local businesses but also spreading warmth throughout local communities," adding, "With the second round of distribution starting on the 22nd, we will work to further expand value-driven consumption."
The second round of livelihood recovery consumption coupons will be distributed from September 22, providing 100,000 won per person to 90% of the population. High-asset households-such as those with a combined property tax base exceeding 1.2 billion won or financial income over 20 million won-are excluded, and only those whose total health insurance premiums as of June are below the standard amount for their household size are eligible for support.
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