Traditional Markets Welcome first Weekend after consumer coupons rolled out. (Image courtesy of Yonhap)
SEOUL, Sept. 19 (Korea Bizwire) — A government-backed consumer coupon program has driven a notable increase in sales at South Korea’s smallest merchants while also lifting household spending among shop owners, Shinhan Card said Thursday.
An analysis by the company’s Big Data Research Center found that after the rollout of the “livelihood recovery consumer coupons,” sales at businesses with annual revenue under 300 million won rose 15.4 percent compared with the three months before the program.
The impact diminished among larger firms, with increases of 6.4 percent for those earning up to 500 million won, 5.9 percent for up to 1 billion won, and 6.5 percent for up to 3 billion won.
First weekend after consumer relief coupon Issued—Will small businesses bounce back? (Image courtesy of Yonhap)
Stronger sales translated into greater personal spending. Card usage among owners of the smallest shops rose 12.6 percent, the steepest gain, followed by 8.8 percent for owners of firms under 500 million won and 2.6 percent for those under 1 billion won. Spending by owners of larger stores barely moved, slipping 0.2 percent.
Shinhan noted that some merchants used the coupons to promote their businesses through advertising or cover operating costs such as office supplies, suggesting the aid functioned as both consumer stimulus and business support.
The company’s “small business hardship index” also showed improvement. As of August, the index for merchants with less than 300 million won in annual sales fell to 87.9, its lowest since 2022, while the broader merchant index dropped to 81.3, reflecting easing financial strain.
“The consumer coupons have acted not only as a boost for spending but also as a catalyst for a positive economic cycle,” a Shinhan Card official said.
Ashley Song (ashley@koreabizwire.com)
