Disaster Relief Funds Released, but Traditional Markets Remain Gloomy... Government Fails to Track Card Terminal Installation Status

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@

[Sejong=Asia Economy Reporters Kim Hyunjung and Jang Sehee] "We don't even know when we might have to close our business. Registering as a business and installing card terminals is out of the question." "I have to sell today and restock tomorrow... We accept Onnuri gift certificates, but we don't take cards."

Although the government restricted the use of emergency disaster relief funds at department stores, large supermarkets, and online shopping malls to boost domestic consumption and support local small business owners, it appears that traditional markets are not expecting much benefit. Small-scale merchants who operate without business registration or card terminal installation are typical examples. In particular, it has been confirmed that before distributing this round of disaster relief funds, the government neither surveyed the installation status of card terminals in traditional markets nor provided guidance to merchants.

According to multiple government departments on the 16th, last week the government began distributing emergency disaster relief funds in the form of card points to all citizens nationwide. The funds cannot be used at department stores, large supermarkets, online shopping malls, entertainment businesses, or gambling establishments. They also cannot be used at jewelry or gift certificate stores. This is to ensure that the funds are primarily spent at small business stores to stimulate domestic consumption.

However, in reality, it is often difficult to purchase goods at traditional markets using cards loaded with the relief fund points. Many merchants do not register as businesses or install card payment terminals because their sales volume is small and they operate stalls irregularly.

According to the Small Enterprise and Market Service (SEMAS), as of 2018, the installation rate of credit card terminals in domestic traditional markets was about 70%. However, this survey was limited to permanent stall merchants and was conducted over two years ago, so it does not reflect the current situation well.

A 65-year-old male merchant at Geumnam Market in Seongdong-gu, Seoul said, "Street vendors without stores mostly operate on a small scale and cannot restock goods without cash, so most do not have card payment terminals." He added, "Wholesale suppliers accept gift certificates (Onnuri gift certificates), so we can handle those, but for elderly small merchants, suddenly dealing with card terminals is not easy."

Another merchant, a 70-year-old woman at Sejong Traditional Market in Jochiwon-eup, Sejong City, said, "More customers want to pay by card even for a single bag of steamed corn, but sometimes I can't sell because I don't have a terminal." She explained, "There are many days when daily sales are less than 50,000 won, so handling cards is difficult."

Lee Sang-baek, head of the Gyeonggi-do Small Business Federation branch, said, "Most street vendors are unregistered stores, and depending on sales, they sometimes cannot purchase goods the next day." He explained, "While the disaster relief funds may bring people into the markets, it is difficult to expect significant sales increases since the funds are provided as card points."

Regarding this, Professor Lee Eun-hee of Inha University's Department of Consumer Studies emphasized, "There are quite a few merchants who stop operating annually in the markets, and the survey on the demand and distribution of terminals in traditional markets is outdated, so the actual situation is not well understood." She stressed, "Considering the groups whose consumption and sales have sharply declined due to the COVID-19 crisis, we need to devise ways to circulate cash quickly in traditional markets connected to these groups."

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