Starting from the 21st, the government will begin distributing 'living recovery consumption coupons' worth up to 450,000 won to all citizens. The eligible stores are small businesses with annual sales of less than 3 billion won. This consumption coupon policy aims to recover sales for small businesses and revitalize the local economy. However, the retail sector shows a mixed sentiment across different industries.
Notably, large supermarkets, corporations, and e-commerce platforms such as Coupang are excluded from the eligible stores. Delivery apps can be used exceptiona...lly depending on whether in-person payment is implemented. The government and the ruling party are considering expanding the eligible stores to include food material marts outside the metropolitan area, but they are facing opposition from small business owners.
◇ Convenience stores 'maximum beneficiaries'... sales doubled in the past
According to the industry on the 9th, the main beneficiaries of this consumption coupon policy are convenience stores. More than 99% of the approximately 58,000 convenience stores nationwide operate in the form of franchises, and most of them meet the annual sales criteria.
Historical examples show that the sales increase effect of convenience stores was evident. According to GS Retail, after the emergency disaster assistance funds were distributed in 2020, the usage of local currency at GS25 surged by 102% in April, 214% in May, and 169% in June. In particular, it is analyzed that the focus on essential goods and food consumption matched the sales structure of convenience stores and the purpose of the consumption coupon.
Jo Yong-hoon, a researcher at NH Investment & Securities, stated, "About 5% of the consumption coupon expenditure will flow into convenience stores," predicting that the recovery of existing store sales may accelerate.
◇ Large supermarkets and corporations 'not eligible'... concerns of up to 20% sales decline
In contrast, large supermarkets such as Emart, Lotte Mart, Homeplus, and warehouse discount stores like Costco and Traders, as well as department stores and global brand stores, are completely excluded from the eligible stores for this consumption coupon.
The same is true for e-commerce platforms such as Coupang and Naver Shopping. With consumers excluded from using these channels, it is difficult to expect a direct rebound in sales.
This was also the case when disaster relief funds were distributed in the past. The Hanmaum Council, a staff representatives organization at Homeplus, noted, "During the time when we were excluded from eligible stores for disaster relief funds, there was a case where sales decreased by up to 20%."
Corporations included in the past support payment eligibility have been excluded from this consumption coupon.
The government and the ruling party are currently considering allowing use only in food material marts outside the metropolitan area, taking into account the accessibility of convenience facilities in those regions.
However, the Korea Federation of Micro Enterprise (KFME) clearly opposed this. In a statement made on the 8th, KFME expressed concern that if the plan (to include food material marts) were implemented, it would undermine the original goals of revitalizing small business operations and the local economy and diminish the policy's effectiveness.
◇ Delivery apps 'in-person payment only'... Baemin allowed but Coupang Eats not allowed
In principle, the use of consumption coupons is restricted for delivery apps; however, they can be used exceptionally if the affiliated store conducts in-person payment ('meeting for payment' method) using their own terminal. Accordingly, Baemin, which has its own payment system, can be used within limits, while Coupang Eats and Naver Orders, which do not have their own payment systems, are completely excluded.
The industry analyzes that considering the contactless and prepayment culture established after COVID-19 and the employment type of delivery workers, the effectiveness of the 'in-person payment' method may be low. There aren't many stores that support the in-person payment option or delivery personnel who carry card payment terminals, so the actual usage rate may be limited.
◇ Franchise stores allowed but company-owned not allowed... including clothing franchises
In the franchise sector, the eligibility for consumption coupon usage varies depending on the operating form. Franchise-centric food and beverage brands, such as Kyochon Chicken, Mom's Touch, Paris Baguette, and Lotteria, mostly allow consumption coupon use.
Daiso has about 30% of its approximately 1,500 stores as franchise stores, making some stores eligible for coupon use. Olive Young also allows the use of coupons at 221 franchise stores, which account for 16% of its total. McDonald's allows the use of coupons at 55 franchised stores (13%).
In contrast, company-owned brands like Starbucks cannot use consumption coupons. Even within the same brand, the eligibility for consumption coupons is divided based on whether the store is company-owned or a franchise.
Fashion companies like Hyungji (Crocodile, Chatren, etc.), Sejung (Indian, etc.), and Shinwon (Vestibule Valley) operate clothing franchises primarily on the streets, making them eligible for consumption coupons. Many of them are managed independently by individual business owners under contract with the head office and meet the criteria for small businesses with annual sales of less than 3 billion won. However, company-owned stores in department stores or shopping malls are restricted from coupon use.