In July, the Korean Government Will Open Its Wallet Again
This year’s Consumer Relief Coupon Program is aimed at stimulating spending to boost the economy, similar to the COVID-era stimulus payments.
Who gets it
· All citizens, tiered by income level
Top 10 percent: 150,000 KRW
General population: 250,000 KRW
Low-income and single-parent households: 400,000 KRW
Basic welfare recipients: 500,000 KRW
How it works
· Issued as digital coupons, linked to credit and debit cards
· Not usable at large retailers or department stores
· Usable at traditional markets, convenience stores, neighborhood supermarkets, restaurants
Usage period
· Valid through November 30, 2025
Distribution schedule
· 1st round: July 21 to September 12, 2025
· 2nd round: September 22 to October 31, 2025
👉 The key detail: this is not cash, but purpose-driven spending.
In the short term, this is expected to directly benefit local businesses and essential consumer sectors.
How Will the Relief Payment Impact Consumer Sentiment
Over the past five years, including the latest round, the government has issued nationwide consumer relief payments three times.
Out of the total 15.2 trillion KRW stimulus package, over 10.3 trillion is allocated to consumer relief coupons, accounting for more than half of the budget. An additional 5 trillion is aimed at supporting small businesses and stabilizing livelihoods.
Shinhan Investment Corp. estimates that the impact on GDP growth will be limited, projecting a short-term lift of just 0.1 percent—suggesting this is not a structural solution
According to data from the Ministry of the Interior and Safety,
mart and grocery purchases accounted for the largest share of spending from previous relief programs—27 percent in 2020 and 28.6 percent in 2021.
This year’s relief coupons are also expected to concentrate spending in the same channels, likely benefiting the food and grocery sector most directly.
Kyobo Securities highlighted that the Consumer Sentiment Index has remained above 100 points since May and reached 108.79 in June—its highest level in four years following the launch of the Lee Jae-myung administration. Based on this, they expect earnings recovery in the food and beverage sector in Q3.
Interestingly, even though department stores were excluded from the list of eligible merchants during the 2020 relief payments, they still saw same-store sales rebound thanks to overall consumption recovery. Convenience stores also maintained growth, helped by increased tobacco sales.
Key Beneficiaries by Sector
Payment Infrastructure – NHN Payco (181710)
· Operates ZeroPay-based local voucher payment platforms
· Most direct payment infrastructure when using government coupons linked to local municipalities
Essential Consumer Goods – BGF Retail (282330)
· Convenience stores are eligible for coupon use, unlike large retailers
· Strong exposure to basic goods like tobacco and food
Retail – Emart (139480)
· Not officially eligible, but some channels like Emart24 and Traders can accept coupons
· Focus on offline daily essentials positions it well for sentiment-driven recovery
Dining – CJ CheilJedang (097950)
· Operates dining brands such as VIPS, Cheiljemyunso, and The Place
· Food service sector is coupon-eligible
Because the use of relief coupons is restricted by merchant type, spending behavior is highly predictable.
Where the Government Is Steering Consumer Spending
The direction is clear:
· Away from large retail and toward essential everyday purchases
· Away from online and toward offline physical spending
· Away from discretionary spending and toward repeatable, basic consumption
This structure creates a favorable environment in the short term for specific sectors like convenience stores, dining, essential goods, and payment infrastructure.
Now is the time to focus not on general expectations, but on how policy is actually reshaping demand in real time.
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