Seoul: Retail sales in South Korea rose 7.7 percent on-year last month, led by stimulus measures aimed at boosting domestic consumption, the industry ministry said Wednesday.
According to Yonhap News Agency, the combined sales of 23 major offline and online retailers reached 16.4 trillion won (US$11.44 billion) in September, up from 15.2 trillion won a year earlier. This increase is largely attributed to the "consumption coupons" distributed under the Lee Jae Myung administration's stimulus program, which aimed to spur private spending and revitalize the economy.
In September, the government launched another round of cash handouts, providing 100,000 won per person to approximately 90 percent of citizens. This followed an earlier round in July, which offered 150,000 won to all citizens, further enhancing consumer spending.
Sales at offline retailers decreased by 1 percent, while online sales saw a significant increase of 16.5 percent in September. Department stores experienced a 4.8 percent rise in sales, and convenience stores posted a 0.9 percent on-year gain. However, discount chain stores like E-Mart and Lotte Mart experienced an 11.7 percent sales decline, and smaller supermarkets saw a slight drop of 0.2 percent.
A ministry official noted that the decline in sales at large discount stores was primarily due to the Chuseok holiday occurring in October this year, unlike the previous year when it fell in September. Additionally, large retailers were excluded from the government's consumption coupon program.
Online platforms continued to grow, accounting for 53.8 percent of total retail sales in September, up from 49.8 percent a year earlier, according to the ministry.