Seoul: South Korean retailers experienced a 9.1 percent increase in sales in July compared to the previous year, primarily driven by government-issued cash handouts intended to stimulate domestic consumption, recent data revealed.
According to Yonhap News Agency, major offline retail companies reported a 2.7 percent rise in sales on-year last month, recovering from a 1.1 percent decrease observed the previous month. Simultaneously, major online platforms saw their sales soar by 15.9 percent during the same period, based on data compiled by the Ministry of Trade, Industry and Energy.
The ministry credited the surge in retail sales to "consumption coupons" distributed by the Lee Jae Myung administration, designed to boost private consumption and revitalize the economy. Last month, the government commenced the distribution of cash handouts amounting to 150,000 won (US$108) to all South Korean citizens residing within the country, with additional financial support planned for low-income and single-parent households.
In the offline sector, department store sales increased by 5.1 percent on-year, driven by strong demand for luxury goods and food products. Convenience stores also saw a 3.9 percent rise in sales, attributed to heightened demand for beverages and processed food products amid the hot weather.
In the online domain, sales of food products, home appliances and electronic devices, and services surged by 32.9 percent, 16.9 percent, and 16.7 percent, respectively.