Within just two weeks of the first-round distribution of the government’s stimulus coupon program, spending reached 2.65 trillion won. More than half of the spending went to sectors closely tied to daily living, such as restaurants, supermarkets, and grocery stores.

The Ministry of the Interior and Safety said on August 7 that it analyzed usage data of the so-called “consumption coupons for livelihood recovery” from July 21 to August 3 provided by nine credit card companies: KB Kookmin, Woori, NH Nonghyup, Lotte, BC, Samsung, Shinhan, Hana, and Hyundai Card.

As of August 3, 2.6518 trillion won worth of coupons, 46 percent of the total 5.7679 trillion won issued via credit and debit cards, had been used.

By sector, the largest share was spent at general restaurants, totaling 1.0989 trillion won (41.4 percent). This was followed by supermarkets and grocery stores at 407.7 billion won (15.4 percent), convenience stores at 257.9 billion won (9.7 percent), hospitals and pharmacies at 214.8 billion won (8.1 percent), clothing and accessories at 106 billion won (4 percent), private academies at 100.6 billion won (3.8 percent), and leisure and recreation at 76 billion won (2.9 percent).

In the fourth week of July (from July 21 to 27), the first week after coupon distribution began, total sales at participating merchants rose 19.5 percent from the previous week (from July 14 to 20) and 5.5 percent year-on-year. By category, sales jumped in private academies (33.3 percent), clothing and accessories (19.7 percent), convenience stores (13.1 percent), and gas stations (13.1 percent) compared with the previous week.

In the fifth week of July (from July 28 to August 3), sales were up 8.4 percent from the third week of July, before coupon distribution began, and up 6.5 percent year-on-year. Compared with the third week of July, sales rose in clothing and accessories (22.9 percent), private academies (22.8 percent), leisure and recreation (19.9 percent), restaurants (16.8 percent), and supermarkets and grocery stores (16.5 percent).

The consumption coupons provide a basic 150,000 won per person in the first round to all citizens. Low-income households and single-parent families receive 300,000 won, while basic livelihood recipients receive 400,000 won. The coupons can be used from the day after application until November 30. Eligible merchants include small businesses with annual sales under 3 billion won, excluding large supermarkets, department stores, and entertainment venues.

A second round of coupons, providing an additional 100,000 won to households in the bottom 90 percent income bracket, will open for applications on September 22.

Minister of the Interior and Safety Yoon Ho-jung said, “The consumption coupons are clearly boosting small business sales and improving consumer confidence. We will continue to encourage rapid spending of the coupons and introduce additional measures to stimulate consumption so that the economy recovers and people’s livelihoods improve.”