Deputy Prime Minister Hong "Considering Including 'Online Malls' as Cashback Usage Locations"

National Assembly Budget and Accounts Special Committee

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is responding to a lawmaker's question at the plenary meeting of the Special Committee on Budget and Accounts held at the National Assembly in Yeouido, Seoul, on the morning of the 15th. July 15, 2021 [Photo by Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 15th regarding the usage locations of the Win-Win Consumption Support Fund (credit card cashback), one of the projects in the 2nd supplementary budget (supplementary budget) plan, "If the overall opinion is gathered that it is better to include online businesses as well, the government will actively discuss it."

Deputy Prime Minister Hong made this remark during the comprehensive policy inquiry at the National Assembly Budget and Accounts Special Committee, responding to the question from Bae Jun-young, a member of the People Power Party, who said, "The restriction on cashback usage for online malls should be lifted." Accordingly, it seems that the plan to include various online malls as well as delivery applications as usage locations will be reviewed.

Earlier, when the government announced the detailed projects of the 2nd supplementary budget plan, it declared that it would introduce a cashback policy to stimulate consumption, but controversy arose as the usage locations were limited to online shopping malls. This is because many small business owners are tenants in online shopping malls, and since non-face-to-face shopping has become routine, excluding them reduces the potential to maximize the consumption stimulation effect.

Deputy Prime Minister Hong explained again the original intent regarding this usage location controversy, saying, "This was one of the most concerning parts," and "Most online businesses' sales increased regardless of COVID-19, and the incentive was mainly intended for those facing difficulties, such as face-to-face dining businesses." He especially emphasized, "It is not at all about saving resources by restricting usage locations."

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