Emergency Disaster Relief Fund Card Applications Start Tomorrow... No Sales-Based Restrictions on Usage Locations (Comprehensive)

Crackdown on Illegal Activities Such as Charging Fees for Credit and Debit Card Payments

[Asia Economy Reporter Jo In-kyung] Applications for charging the government’s emergency disaster relief funds to credit and debit cards will begin tomorrow on the websites of nine card companies: KB Kookmin, NH Nonghyup, Lotte, BC, Samsung, Shinhan, Woori, Hana, and Hyundai Card.

According to the Ministry of the Interior and Safety on the 10th, the first week of emergency disaster relief fund applications will follow a day-of-the-week system similar to the public mask 5-day rotation system. On the 11th, only those whose birth year ends in 1 or 6 can apply; on the 12th, those ending in 2 or 7; on the 13th, 3 or 8; on the 14th, 4 or 9; and on the 15th, 5 or 0. From the 16th onward, the 5-day rotation system will no longer apply, and anyone can apply.

Once accessing the card companies’ PC or mobile websites or mobile applications, the funds will be charged two days after the application date. The head of the household as registered in the resident registration must apply in person and receive the funds on a card registered under their name.

The number of household members eligible for the emergency disaster relief fund can be checked on the website (긴급재난지원금.kr). Previously, checking was also subject to the 5-day rotation system, but now it can be done at any time.

When charging credit or debit cards, applicants can choose to donate all or part of the support funds in units of 10,000 KRW on the card company’s website, and the remaining amount after the donation will be charged to the card.

The charged amount received as emergency disaster relief funds is separate from existing card points, and the usage method is the same as regular card use. When paying at merchants, the amount is automatically deducted from the card bill.

The support funds can be used anywhere within the metropolitan local government area based on the resident registration address as of March 29, excluding restricted business sectors, wherever card payments are accepted. All funds must be used by August 31 of this year, and any unused balance will expire. Usage amounts and current balances can be checked via card company text messages, websites, or customer centers.

In addition to income support for households affected by the novel coronavirus infection (COVID-19), the emergency disaster relief funds have usage restrictions to help stimulate consumption and revitalize the local economy.

Restricted sectors include department stores, duty-free shops, large marts including corporate supermarkets, large electronics stores, online electronic commerce, sectors where cashable items such as gift certificates and precious metals can be purchased, entertainment businesses, hygiene businesses such as massage parlors, leisure businesses such as golf practice ranges, gambling industries, and illegal gambling industries. The funds cannot be used for taxes, public utility fees, insurance premiums, transportation and communication fees, or automatic card payments.

For various convenience stores and bakeries that are franchises, the emergency disaster relief funds can be used at most stores (franchisees) registered as businesses in the relevant area. Specific restricted businesses may vary slightly depending on each card company’s industry classification, so inquiries should be made through each card company’s website or customer center.

Previously, some local governments’ own disaster relief funds restricted usage to businesses with annual sales exceeding 1 billion KRW, but the government’s emergency disaster relief funds do not apply sales volume criteria. Regarding usage areas, restrictions are not applied at the city or county level but at the metropolitan city or province level. Also, if used in restricted sectors, a text message is sent immediately upon payment to confirm whether the disaster relief funds were used.

The government considers charging additional amounts under the pretext of fees, VAT, etc., when paying with credit or debit cards using emergency disaster relief funds as clear illegal acts and will punish offenders according to relevant laws. To this end, ‘Discriminatory Transaction and Illegal Distribution Reporting Centers’ will be established and operated by city and province to monitor and crack down on such acts.

Applications for charging emergency disaster relief funds to credit and debit cards can also be made offline at bank counters linked with card companies starting from the 18th. Prepaid cards and local love gift certificates can also be applied for online and offline from the 18th.

Yoon Jong-in, Vice Minister of the Ministry of the Interior and Safety, said, “The emergency disaster relief funds must have usage restrictions to stimulate consumption within the region and revitalize the neighborhood economy. We will continue to inform the public about usage locations to minimize difficulties in using the funds.”

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