‘From Large Marts to Small Stores’ Ontong Daejeon Redirects Consumer Foot Traffic

[Asia Economy (Daejeon) Reporter Jeong Il-woong] A survey has revealed that the Daejeon local currency, Ontong Daejeon, has shifted consumption patterns from large supermarkets to small stores.

On the 17th, the Daejeon City government announced the results of an analysis on the ripple effects of Ontong Daejeon on the local economy, based on an online survey of 2,000 Ontong Daejeon users conducted by the Daejeon-Sejong Research Institute and card sales data.

According to the analysis, the issuance effects of Ontong Daejeon include ▲prevention of capital outflow from the region ▲increase in sales of small business owners ▲increase in net consumption within the region.

The amount of in-region consumption converted to Ontong Daejeon was 103.8 billion KRW, the amount of sales shifted from large supermarkets to neighborhood commercial districts was 195.3 billion KRW, and the increase in net consumption generated through cashback and other payments was 178.1 billion KRW.

These economic effects are arithmetically analyzed as an increase in sales of about 2 million KRW per small business store. Based on this, the city emphasized that Ontong Daejeon has had a significant effect on increasing small business sales and revitalizing the local economy in just over six months since its launch.

The analysis also showed that Ontong Daejeon had a large ripple effect on the local economy. First, after the issuance of Ontong Daejeon, tax revenue increased by 4.2 billion KRW in comprehensive income tax and 420 million KRW in local income tax, respectively.

Furthermore, the city explained that consumption promotion and increased sales of small business owners led to increased tax revenue, with consumption tax income such as value-added tax of 16.2 billion KRW and local consumption tax of 3.4 billion KRW also rising accordingly.

Meanwhile, Ontong Daejeon has mainly been used for purchasing groceries and dining at general restaurants (67% of total usage), according to the analysis.

In particular, 60% of all respondents reported that their consumption patterns changed from usually using large supermarkets and online shopping to using small business stores after the issuance of Ontong Daejeon.

Additionally, 82% of respondents expressed satisfaction with using Ontong Daejeon, citing reasons such as ▲benefits like cashback and income deduction (75.2%) ▲revitalization of the Daejeon regional economy (10.9%) ▲distribution of disaster relief funds (8.7%) ▲support for self-employed and traditional markets (4.8%).

Among respondents, 37% said their spending increased compared to usual while using Ontong Daejeon, and 28% reported unplanned expenditures due to Ontong Daejeon cashback and other benefits.

Ko Hyun-duk, Director of the City’s Job and Economy Bureau, said, “As economic damage has accumulated due to COVID-19, the utility of Ontong Daejeon is increasing,” adding, “Based on the analysis results, the city will implement policies to establish Ontong Daejeon as a local livelihood economy brand and serve as a foundation for revitalizing the regional economy.”

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