Jeong Kwan Jang franchise sales rise 12% on high-cost-of-living support fund boost

Jeong Kwan Jang said Monday that sales at its franchise stores nationwide rose 12 percent year-on-year during its "Cheer Up, Korea" promotion, driven in part by the distribution of high-cost-of-living victim support funds.

Regional consumption was particularly strong. During the promotion, which ran from June 11 to June 30, the share of franchise stores outside Greater Seoul that posted year-on-year sales growth was 7 percentage points higher than in the metropolitan area. Growth was especially pronounced in the Gyeongsang, Jeolla and Chungcheong regions.

The customer base also widened. Sales to new customers at franchise stores climbed 23 percent year-on-year during the promotion, outpacing the 13 percent growth recorded among existing customers by about 10 percentage points.

Growth among younger consumers was also notable. Sales to customers in their 20s surged 39 percent, while those in their 30s rose 19 percent — the highest growth rates of any age group.

Value-for-money and convenience-oriented products led the gains. Hwalginyeok, an ampoule-type health drink, posted the highest growth at 65 percent year-on-year. Everytime, available in stick, ampoule and film formats, grew 41 percent. Sales of the signature red ginseng extract Hongsam Jeong also rose 33 percent.

A Jeong Kwan Jang official said the release of the victim support funds coincided with summer health-care demand, channeling spending into local commercial districts and lifting franchise sales. "The significant influx of consumers in their 20s and 30s is meaningful in that the support fund effect served as an opportunity to secure a new consumer base," the official said.