KGC Cheong Kwan Jang Benefits from High Oil Price Compensation Funds... Franchise Sales Increase

Sales Up 12% Year-on-Year
"Hwalgi-ryeok," "Everytime," and "Hong Sam Jeong" Rise in Popularity

It appears that the government's distribution of high oil price compensation funds has stimulated a recovery in consumer spending within the health functional food market.

KGC Cheong Kwan Jang announced on July 20 that its nationwide franchise sales during the "Cheer Up, Korea" promotion, which ran from June 11 to June 30, increased by 12% compared to the same period last year. Recently, the Ministry of SMEs and Startups also reported that, following the distribution of the compensation funds, total sales at businesses nationwide grew by 10.6% year-on-year.

Franchise shops of Cheong Kwan Jang saw a particularly strong recovery in regional consumer spending. During the event period, the proportion of franchisees outside the Seoul metropolitan area that experienced sales growth was 7% higher than those in the metropolitan area. The company explained that areas such as Gyeongsang, Jeolla, and Chungcheong provinces saw especially strong growth, as the compensation funds boosted local market consumption, which in turn increased franchise purchases.

Furthermore, sales from new franchise customers during the promotion period rose by 23% year-on-year, about 10% higher than the growth rate among existing customers. The influx of new consumers outpaced the repeat purchases by existing customers, indicating the potential for further expansion of the health functional food market. Growth among younger consumers was also noteworthy: sales to customers in their 20s increased by 39%, and those in their 30s by 19%—the highest growth rates across all age groups.

By product, items emphasizing cost-effectiveness and convenience drove growth. "Hwalgi-ryeok" recorded the highest increase, growing by 65% compared to last year. "Hwalgi-ryeok" is an ampoule-type health drink made with six-year-old red ginseng concentrate, plus traditional ingredients such as ginger, jujube, goji berry, omija, astragalus, and vitamins B and C.

Cheong Kwan Jang's flagship brand, "Everytime," also grew by 41%. Since its launch in 2012, "Everytime" has generated cumulative sales of 2 trillion won and has become a leading export item, shipped in various forms—including stick, ampoule, and film—to more than 22 countries, surpassing 7 million units. Sales of the signature item "Hong Sam Jeong" also increased by 33%.

This content was produced with the assistance of AI translation services.