Onnuri Gift Certificates to Offer Up to 10% in Benefits from Next Year When Used at Traditional Markets

[Financial News] Starting next year, consumers can receive benefits of up to 10% when using Onnuri Gift Certificates at traditional markets. A linked system will also be established so foreign tourists can make transactions through payment apps they use in their home countries, such as Alipay, which is used in China.
The Ministry of SMEs and Startups (MSS) unveiled the plan to overhaul Onnuri Gift Certificates at a meeting of the Emergency Economic Headquarters and the Meeting of Economy-Related Ministers held at Government Complex Seoul on the first. This marks the first overhaul in 18 years since the certificates were introduced in 2009.
The overhaul focuses on moving away from a uniform upfront discount and differentiating benefits according to where the certificates are actually used, thereby directing consumer spending toward traditional markets and local neighborhood commercial districts.
Digital Onnuri Gift Certificates currently offer a basic upfront discount of 7%. For example, if a consumer loads KRW 100,000, the actual amount paid is KRW 93,000.
Starting next year, the basic purchase discount will be lowered to 5%, with additional cashback provided based on where the certificate is used. At traditional markets, consumers will receive a 5% discount at the time of purchase and an additional 5% cashback after payment, for total benefits of 10%. In local neighborhood commercial districts, the 5% discount will be combined with 3% cashback, providing total benefits of 8%. In contrast, neighborhood commercial districts in the Seoul metropolitan area will receive only the 5% purchase discount, with no additional cashback.
Kim Jeong-ju, director general of small business policy at the MSS, explained at a briefing the previous day, "In the Seoul metropolitan area, local governments have relatively strong fiscal capacity and can issue sufficient local currency, but the issuance of local currency tends to decline in non-metropolitan areas. Broadly speaking, local currency is operated by local governments to stimulate local consumption, while Onnuri is operated by the national government to support traditional markets and vulnerable local commercial districts, which are relatively weaker links."
The designation criteria for alley-type shopping districts where Onnuri Gift Certificates can be used will also be revised. The criteria will vary according to the fiscal conditions of local governments. In areas in the top 25% for fiscal self-reliance, at least 30 small-business stores must be located within 2,000 square meters. The requirement will be at least 20 stores in areas in the middle 50% and at least 15 stores in areas in the bottom 25%. The 15-store requirement will also apply to commercial areas within 1 kilometer of traditional markets and areas experiencing population decline.
The government will also pursue measures linking Onnuri Gift Certificates with regional tourism. Consumers who spend at least a certain amount using Digital Onnuri in regional areas will receive additional benefits, such as admission tickets to local attractions, accommodation vouchers and discount coupons for local shopping malls. Travel packages combining traditional markets with nearby tourist attractions and neighborhood commercial districts will also be expanded.
Stores that do not align with the policy's purpose will also face restrictions on participating-merchant registration and renewal, ensuring that related support is concentrated among small and micro businesses.
In June, the MSS limited Onnuri participating-merchant registration to businesses with annual sales of KRW 3 billion or less and restricted participation by professional service providers, including hospitals and clinics, law firms, accounting firms and tax services. The measure was intended to minimize the use of Onnuri Gift Certificates when hair-loss and obesity medications are prescribed at hospitals and clinics. Pharmacies, however, were allowed to participate in consideration of their ability to draw customers to traditional markets and surrounding commercial areas.
The government will also lower the barriers for foreign tourists. It plans to build infrastructure allowing tourists to make QR payments with Onnuri Gift Certificates at traditional markets through Alipay, which is linked to more than 40 payment apps worldwide, without exchanging currency or obtaining a card.
Locations of Onnuri participating merchants and traditional markets will also be displayed on map services such as NAVER and Kakao, as well as on navigation services for foreign users.
The government will also strengthen the integration of mutual-growth delivery apps with Onnuri Gift Certificates. It plans to provide discount coupons when customers pay with Onnuri Gift Certificates or local currency through mutual-growth delivery apps. The budget proposal for next year includes KRW 120 billion for the initiative.
MSS Minister Lee So-young said, "We will ensure that Onnuri becomes a reliable catalyst for increasing sales for traditional-market merchants and local business owners."
[email protected] Lee Ju-mi Reporter