Convenience stores, other retailers ramp up promotions as gov't consumer coupon program begins

Home > Business > Economy

Convenience stores, other retailers ramp up promotions as gov't consumer coupon program begins

Published: 22 Jul. 2025, 08:23 Updated: 22 Jul. 2025, 19:55

Audio report: written by reporters, read by AI

Customers look at goods at a convenience store in Seoul on May 12. [YONHAP]

As the government began distributing its consumer coupons on Tuesday, offering cash-equivalent vouchers to stimulate domestic consumption, retailers — especially convenience stores — are ramping up promotions to attract customers and maximize benefits from the stimulus.

Up to 13.2 trillion won ($9.5 billion) will be distributed in two phases, providing each person between 150,000 won to 450,000 won in the first phase, and 100,000 won more for those in the bottom 90 percent of the income bracket in the second phase.

They are usable at small businesses such as convenience stores and restaurants with annual sales under 3 billion won. Large chains and most directly operated stores are excluded, positioning convenience stores as the biggest winners.

That puts the spotlight on convenience stores, which are expected to be the biggest winners, as most franchise locations accept the vouchers.

“The timing overlaps with the peak summer vacation season, so we expect a significant sales boost,” an industry insider said.

During the 2020 Covid-19 emergency relief program, convenience stores saw a similar windfall.

GS25 reported that payments made with Zero Pay and the Gyeonggi basic income card soared by 102 percent, 214 percent and 169 percent, respectively, in the three months following the grant. CU’s third-quarter revenue in 2020 climbed to 1.68 trillion won, up 6.3 percent year-on-year, a jump attributed to stimulus-driven consumer spending.

GS25 employees promote the convenience store chain's availability to use the government-handed consumption coupons [GS RETAIL]

GS25 this time has launched a “Neighborhood Livelihood Recovery Convenience Store” campaign, discounting staple products like instant noodles, eggs and milk. With coupon-linked cards and buy-two-get-one-free bundle deals, some ramyeon varieties are available at half price.

More than 1,700 products — including snacks, alcoholic beverages, ready-made meals and daily essentials — are eligible for discounts or freebies, covering over 50 percent of all items. Fresh produce, including Korean beef, short ribs, eel, abalone, and apples — previously available only at 600 specialized locations — will now be accessible at all franchise stores.

“In 2020, four of the top 10 items with the highest sales growth were meat products,” a GS25 spokesperson said. “We’ve curated practical items that align with the coupon program’s goals.”

A sign on a CU convenience store branch says the store accepts the government's consumption coupons handed out for domestic stimulus. [BGF RETAIL]

CU is offering bundled discounts of 33 percent to 63 percent on ramyeon, instant rice, health supplements and bottled water. For 36 daily necessity items, an additional 25 percent discount applies when using designated cards. Members of the Pocket CU mobile app can receive up to 100,000 reward points. From Tuesday to Saturday, select food items, including fried chicken, yangjangpi (a Chinese-style dish of seafood and vegetables with mustard), tofu sushi, and sandwiches, will be sold at the lowest prices among competitors.

At 7-Eleven, more than 2,000 items are included in giveaway and discount promotions through August. Thirty-five products, including bottled water and ice cream, will be discounted by an additional 20 percent. Seasonal delivery-only products, typically offered during major holidays like Chuseok or Lunar New Year — such as Korean beef, shine muscat grapes and massage devices — will also be sold at promotional prices.

Food and beverage chains like No Brand Burger, GoPizza and Twosome Place are also joining the campaign with their own deals.

Food delivery platform Baedal Minjok is aggressively marketing its face-to-face payment option that allows customers to use their consumption coupons as a means of payment. [WOOWA BROTHERS]

Retailers that do not directly accept the coupons are still hoping for a boost. Large supermarkets, where the coupons can be used in certain small-merchant-operated sections such as restaurants, opticians, salons and pharmacies, are promoting these areas to attract shoppers.

“Although the coupons are restricted to some small vendors, we expect a positive spillover effect for overall customer traffic,” said one industry insider.

Chains like beauty shop Olive Young and dollar shop Daiso — where directly operated stores dominate — are helping customers find eligible outlets by marking “coupon-eligible stores” on their online maps and platforms like Naver.

Delivery app Baedal Minjok is also promoting the fact that the coupons can be used through face-to-face payment with riders, and has made the option to pay in person more prominent on its app.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HWANG SOO-YEON [[email protected]]