Consumer Coupons Boost Small Business Sales by 0.433 Won Per Coupon Won Spent

The consumer coupon policy implemented by the government last year has shown higher-than-expected effectiveness, indicating that consumer coupons have contributed to actual economic revitalization beyond simple government subsidies.

This study was conducted by the Korea Institute of Public Finance based on actual payment data from six domestic credit card companies. According to the research findings, for every 1 won spent on consumer coupons, local small businesses saw an increase of 0.433 won in actual sales. The total scale of the first and second rounds of consumer coupon disbursements was estimated at 13.52 trillion won, with the net consumption-increasing effect for small businesses estimated at 5.86 trillion won.

The effects of the consumer coupon distribution were more pronounced among vulnerable groups. Consumption conversion rates were high in low-income areas (53.2%) and areas with many vulnerable households (72.6%), and significant sales increases were observed in non-metropolitan areas and regions with a high proportion of low-income and vulnerable populations.

Jang Woo-hyun, director of the Center for National Accounting and Fiscal Statistics, analyzed that 49.6% of the total effect occurred in daily life-dependent consumption sectors such as restaurants, general retail, mail-order retail, food and beverage retail, and specialty retail. Consumption increases were also confirmed in automotive and motorcycle repair, hospitals, and education, leisure, and culture sectors.

It was analyzed that it would take approximately 25 years and 10 months for the 13.52 trillion won invested in consumer coupons to be accumulated in national coffers through tax revenue expansion. Director Jang Woo-hyun explained that achieving the break-even point was a positive result, comparing it to infrastructure (SOC) investment.

A survey of 1,000 citizens revealed that approximately 70% of respondents replied that the consumer coupon policy helped boost national consumption, recover small business sales, and improve the short-term livelihood economy. The livelihood recovery consumer coupons were distributed in two rounds last year. In the first round, 150,000 to 450,000 won per person was given to all citizens, and in the second round, 100,000 won was given to citizens excluding the top 10% income earners.