Local Love Gift Certificate Limit Increased to 3 Million Won... Utilized for Emergency Disaster Relief Fund Payments

[Asia Economy Reporter Kangwook Cho] The government is expanding the limit of prepaid electronic payment methods to 3 million KRW to expedite the disbursement of emergency disaster relief funds to overcome the COVID-19 crisis. However, this applies only when the emergency disaster relief funds are provided through card or mobile-type local love gift certificates operated by local governments. The deadline is limited to September 30.

The Financial Services Commission announced that the 'Enforcement Decree of the Electronic Financial Transactions Act,' which increases the issuance face value limit of prepaid electronic payment methods to allow local governments to utilize card or mobile-type local love gift certificate platforms they have established as one of the payment methods for emergency disaster relief funds, passed the Cabinet meeting on the 28th.

With this revision of the Enforcement Decree of the Electronic Financial Transactions Act, local governments can issue emergency disaster relief funds through card or mobile-type local love gift certificates up to a maximum face value of 3 million KRW (previously 500,000 KRW for anonymous type, 2 million KRW for registered type) if issued by September 30.

The government has been promoting the use of card-type or mobile-type local love gift certificate platforms, which are already established and operated by 125 local governments nationwide (metropolitan and basic), to expedite the disbursement of emergency disaster relief funds. However, card and mobile-type local love gift certificates fall under 'prepaid electronic payment methods' according to the Electronic Financial Transactions Act, subject to issuance limits of 500,000 KRW for anonymous types and 2 million KRW for registered types. Therefore, for card-type local love gift certificates, issuing more than 500,000 KRW in emergency disaster relief funds required issuing two cards, and for mobile-type local love gift certificates, citizens who have already used up to the 2 million KRW limit through existing local government platforms could not receive additional emergency disaster relief funds.

Accordingly, the government revised the Enforcement Decree of the Electronic Financial Transactions Act to temporarily raise the issuance limit to 3 million KRW for both registered and anonymous types until September 30 when the state or local governments provide support funds as prepaid electronic payment methods with specified recipients, usage locations, and usage periods due to disasters.

Currently, local governments operate 'local currencies' such as electronic money or local gift certificates. Local currencies are alternative currencies that can only be used within specific regions. They are issued to activate the exchange of human and material resources within the region, support small businesses, improve consumer sentiment, and stimulate the local economy. Three entities?Korea Minting and Security Printing Corporation, KT, and Kona I?are responsible for issuance and operation agency services.

A Financial Services Commission official said, "With this revision of the enforcement decree, local governments' card and mobile-type local love gift certificate platforms can be utilized for the disbursement of emergency disaster relief funds," adding, "Together with prepaid card platforms of credit card companies, it is expected that emergency disaster relief funds will be delivered to the public more quickly and efficiently."

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