"13 Trillion Won Consumption Coupons Rollout: Essential Stocks for Your Portfolio"

# South Korea's Fiscal Stimulus Puts Spotlight on Consumer Stocks To boost domestic consumption, the South Korean government is poised to deploy "Relief Consumption Coupons" as part of a supplementary budget plan. This move has prompted investors to seize opportunities in consumer-centric sectors. On July 2, the National Assembly's Public Administration and Security Committee greenlit a supplementary budget bill worth 13.2 trillion won ($10.2 billion) through bipartisan agreement. This budget notably includes consumer coupons to encourage spending. Industry experts have described this budget as the boldest effort in the past decade, excluding the pandemic, to target consumer relief. "This supplementary budget marks the most direct consumer support initiative in recent years," noted an industry expert. # Key Sectors and Historical Impact of Consumer Stimulus Financial analysts advise closely monitoring sectors like retail, food and beverage, seafood, and confectionery. Historical data shows a robust consumer response to direct fiscal stimulus. During the pandemic in 2020 and 2021, South Korea’s cash handouts led to notable spikes in retail sales. Monthly indices posted double-digit growth rates, with retail sales indices rising by 4.7% in June 2020 and 5.8% in September 2021. Grocery and supermarket spending dominated usage in both years, as reported by the Ministry of the Interior and Safety, accounting for 27.0% in 2020 and 28.6% in 2021 of all expenditures. # Consumer Sentiment and Beneficiary Stocks Increased disposable income among lower-income households, who have a higher propensity to consume, is expected to boost segments like food, beverages, and dining. "Stimulus-driven income growth directly increases food and beverage consumption, benefiting sector equities," stated Lee Kyung-min, an analyst at IM Investment & Securities. Retail giants like E-Mart, BGF Retail, and GS Retail may benefit from increased coupon-driven traffic. Beverage firms such as Hite Jinro and Lotte Chilsung, along with confectionery and dairy companies like Haitai Confectionery Foods, Crown Confectionery, Maeil Dairy, Namyang Dairy, Nongshim, Binggrae, and Orion Holdings, are poised for growth. Additionally, integrated food firms like CJ CheilJedang, Daesang, Pulmuone, and Sempio are set to gain, while seafood companies such as Sajo Seafood, Dongwon Industries, and Sajo Industries are attracting investor interest amid expected spending increases. # Optimistic Third-Quarter Outlook Industry players are particularly optimistic about the third quarter, aligning with the comprehensive rollout of the consumption coupon program and improved consumer sentiment. South Korea’s Consumer Sentiment Index rose above the critical 100 mark, reaching 108.7 in June, its highest in nearly four years. "The rollout of consumption coupons combined with rising consumer confidence, baseline effects from last year, and government fiscal initiatives may accelerate earnings recovery for the food and beverage sector in Q3," said Kwon Woo-jeong, an analyst at Kyobo Securities. "This suggests a shift from a trough phase for the industry cycle." Investors will monitor government policy execution and corporate performance of identified beneficiary stocks as South Korea’s fiscal stimulus continues to unfold.