IKEA Accepted, But Starbucks Only in Seoul? ... Still Confused About the Emergency Disaster Relief Fund

Emart No Brand Allows Supply from SMEs Considering Product Source
Taxi Fare Payment Only Possible if Registered Municipality and User Residence Match

On the 14th, when the emergency disaster relief fund application was underway, a notice informing the use of the disaster relief fund was posted at a store located in Namdaemun Market, Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy reporters Jo In-kyung and Ki Ha-young] "Is it reasonable that emergency disaster relief funds can't be used at Costco but can be used at IKEA?"

"Can emergency disaster relief funds be used at kids' cafes in department stores?"

Starting from the 13th, the use of emergency disaster relief funds received as credit and debit card points has begun, leading to a flood of inquiries to card companies regarding where the funds can be used. A card company official said, "Since the day before yesterday, calls asking about usage locations have surged," adding, "We have no time to rest as we check and guide whether merchants are affiliated by region and classify industries."

Consumers continue to experience confusion and complaints about where the government's emergency disaster relief funds can be used. Although the government initially announced the industries where the funds could and could not be used, there are differences even within the same industry, with some places accepting the funds and others not.

The most controversial store among consumers is Starbucks. In the case of Starbucks, emergency disaster relief funds can only be used in 'Seoul,' where the headquarters is located. There was also discussion about excluding Starbucks entirely from eligible locations since all stores are directly operated by the headquarters, but ultimately, only stores located in the headquarters' area were included as eligible. This has led to criticism that it goes against the purpose of the relief funds, which is to support local businesses.

All large marts and large supermarkets except Nonghyup Hanaro Mart were excluded from eligible locations, yet GS The Fresh and Emart No Brand, operated by large corporations, were allowed to accept the emergency disaster relief funds, which has also sparked controversy. Initially, GS The Fresh was included because of its high proportion of fresh food sales, and No Brand products were included because they are mainly produced and supplied by small and medium-sized enterprises. Regarding IKEA, it was classified under the furniture industry and thus eligible for the funds, which angered the domestic furniture industry and led to an emergency countermeasure meeting on the 15th.

Rental stores within department stores or large marts are also adding to the confusion. While the large marts themselves are not eligible, rental stores operating as shop-in-shop can accept the emergency disaster relief funds. There is also confusion caused by differences between the store names known to customers and the names registered as merchants with card companies.

The use of emergency disaster relief funds also varies for taxis depending on the location of their headquarters. Funds can be used when taking taxis equipped with card payment terminals, but the taxi's registered local government and the passenger's residence must be the same. For example, a Seoul resident cannot use the funds when taking a taxi registered in Gyeonggi Province, nor can a Gyeonggi resident working in Seoul use the funds when taking a taxi near their workplace.

The government explains that these issues arose because the usage locations for the emergency disaster relief funds were applied based on existing card company partnerships with the Idolbom Point usage locations. Due to the lack of time to apply new industry classifications or systems for the rapid distribution of relief funds, the same problems have been recurring.

Regarding controversial companies like Starbucks and KTX, the government has been consulting with card companies and businesses, believing detailed adjustments are possible, but no suitable solutions have been found.

An official from the Ministry of the Interior and Safety said, "Changing industry classifications now could cause system errors in card companies, and suddenly restricting places that were previously eligible could create greater confusion, such as how to handle payments already made by consumers."

Companies are cautious about commenting on the advantages or disadvantages of the emergency disaster relief fund usage, stating that it is a government-determined issue. A card industry official said, "Since each card company has different industry classifications, when inquiries come in, we check each case and provide guidance," adding, "Even when complaints arise among customers about where the funds can or cannot be used, we have no choice but to be cautious between the government and customers."

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