Discount rate on local gift certificates up 5 percentage points... “Up to 17% off from the 29th”

[Financial News]  Starting on the 29th, discounts on local gift certificates will rise to as much as 17%. The government is raising the discount rate by 5 percentage points to coincide with the 2nd Korea Grand Festival, which runs through the 15th of next month. This means discounts of 13% in the capital region, 15% outside the capital region and 17% in areas with declining populations. 
The Ministry of the Interior and Safety said it had reported a plan to expand discounts on local gift certificates at the State Council of South Korea meeting on the 27th. During the festival, the government plans to increase central government funding for the certificates to encourage local consumption.
The discount rate will rise from 8% to 13% in the capital region and from 10% to 15% outside it. Areas with declining populations will see the rate increase from 12% to 17%, the highest discount available.
Assuming a customer buys certificates worth 100,000 won, the purchase price in the capital region will fall from 92,000 won to 87,000 won. Outside the capital region, certificates that previously cost 90,000 won can be bought for 85,000 won. In areas with declining populations, the price will drop from 88,000 won to 83,000 won. Although discount rates vary by region, the change amounts to an additional 5,000-won discount for every 100,000 won in certificates compared with before.
However, the actual discount period varies by local government. The Korea Grand Festival will run for 18 days, from the 29th through November 15, but people should check with their local government for the schedule of additional discounts on local gift certificates.
Some local governments have also prepared their own benefits. Gangjin County in South Jeolla Province; Andong-si and Goryeong County in North Gyeongsang Province; Ipjang-myeon in South Chungcheong Province; Gwacheon City, Ansan-si, Gapyeong County and Gwangju Metropolitan City in Gyeonggi Province; and Jecheon-si and Okcheon-gun in North Chungcheong Province, among others, are pursuing additional refunds, increased issuance of gift certificates or higher purchase limits.
The government aims to ease the purchasing burden on consumers and boost sales for local small businesses and neighborhood commercial districts through this expansion of discounts.

[email protected] Lee Bomi Reporter