Incheon Local Currency Transaction Volume Ranks First Nationwide... Driving Increased Sales for Small Businesses

Incheon e-eum Subscribers Reach 1.347 Million
Payment Amount Hits 2.3558 Trillion KRW by October
10% Cashback Increase Extended Until Year-End

Incheon e-eum Card

[Asia Economy Reporter Park Hyesook] The Incheon city local currency card 'Incheon e-eum' is showing the highest transaction performance nationwide, significantly contributing to the revitalization of the local economy. Incheon City plans to extend the cashback system, which provides up to 10% cashback on card payments, until the end of this year to continue encouraging citizen consumption and increasing sales for small business owners.

According to the city on the 3rd, the number of Incheon e-eum subscribers reached a total of 1,347,000 as of the 25th of last month, accounting for 82% of Incheon’s economically active population of 1.64 million. Based on the eligible population of 2.6 million aged 14 and above, the subscription rate corresponds to 52%.

The total payment amount reached 2.3558 trillion KRW (cumulative payment amount since 2019 is 3.9023 trillion KRW), and it is expected to reach 3 trillion KRW by the end of the year.

Notably, from July to September, the average monthly payment was 270.2 billion KRW, and the average daily payment was 8.8 billion KRW using Incheon e-eum. This is outstanding among local currencies nationwide, maintaining the top transaction volume nationwide as of the end of August this year, following last year.

The Incheon e-eum card currently provides 10% cashback for monthly payments up to 500,000 KRW and 1% cashback for payments between 500,000 and 1,000,000 KRW.

In September, the average monthly payment per Incheon e-eum user was 340,000 KRW, with 305,000 KRW recharged and used, and 35,000 KRW paid using cashback. Additionally, 224,000 users, accounting for 28% of the 800,000 Incheon e-eum users in September, spent over 500,000 KRW, representing 55% of the total payment amount of 274.6 billion KRW that month.

Of particular note is that payments exceeding 1,000,000 KRW, which do not qualify for cashback, accounted for 7%, indicating that citizens are making conscientious consumption a habit through Incheon e-eum.

Furthermore, the 300 billion KRW in policy allowances, including emergency disaster relief funds and temporary living support for low-income groups distributed as 'Incheon e-eum consumption coupons' since April, as well as education disaster relief funds starting at the end of September, were all spent within the Incheon area.

In March this year, Incheon City raised the Incheon e-eum cashback rate from 4% to 10% and utilized policy allowances through the Incheon e-eum card, resulting in continuous growth in local currency payment amounts, which has led to increased sales for small business owners.

Looking at payment details in key small business sectors such as retail (supermarkets, convenience stores, etc.), general food service, and beverage and food (bakeries, butcher shops, etc.), monthly average payments increased 2.1 times from 71.1 billion KRW in January and February when 4% cashback was provided to 149.8 billion KRW from March to September when 10% cashback was given.

Incheon City plans to maintain the 10% cashback benefit of Incheon e-eum until the end of December this year to boost sales for small business owners and self-employed individuals struggling due to the prolonged COVID-19 pandemic.

Accordingly, if a citizen uses 1,000,000 KRW per month on Incheon e-eum, they can receive up to 55,000 KRW per month in cashback as consumption support funds. From March, when the cashback rate was raised to 10%, through December, over 10 months, a family of four each spending 1,000,000 KRW monthly could receive up to 2.2 million KRW in consumption support benefits.

An official from Incheon City stated, "Cashback can be used just like the Incheon e-eum recharge amount and cannot be converted to cash, serving as a catalyst for further consumption. The extension of the 10% cashback benefit until the end of the year will increase household consumption, and the increased consumption will translate into sales for small business owners, contributing to the recovery of the local economy, which is facing a crisis due to COVID-19."

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