Effect of High Oil Price Support Grant, Red Ginseng Store Franchise Sales Rise 12%

*This content was translated by AI.

The government's payment of support grants for high oil price damage is showing an effect as a catalyst for consumption recovery.

As performance improvements are confirmed in convenience stores and traditional markets, franchise stores also see the spread of consumer warmth across local business districts.

Korean Red Ginseng Corporation (KGC) announced that during the 'Cheer Up, Korea' promotion held from June 11 to 30, sales at its nationwide franchises increased by 12% compared to the same period last year.

This aligns with an analysis released recently by the Ministry of SMEs and Startups stating that sales at businesses nationwide rose 10.6% year-on-year following the payment of high oil price damage support grants. The government evaluated that consumption expanded centered on retail businesses after the grant payments, leading to revitalization effects in local business districts.

The consumer base also broadened. During the event period, sales from new franchise customers increased by 23% year-on-year, about 10 percentage points higher than the growth rate of existing customer sales (13%).

In particular, sales from customers in their 20s at Korean Red Ginseng Corporation franchises rose by 39%, and those in their 30s increased by 19%, recording the highest growth rates among all age groups.

By product, 'Hwalgi-ryeok' grew 65% year-on-year, 'Everytime' also grew 41%, and 'Hongsamjeong' increased by 33%. The industry judges that the high oil price damage support grants stimulated daily life-oriented consumption, leading to purchases of health functional foods.

A KGC official who spoke with this newspaper by phone said, "With the payment of high oil price damage support grants, local business district consumption coincided with summer health management demand, leading to increased franchise sales."

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*This content was translated by AI.