Credit Card Cashback Period Shortened to 2 Months... Delivery Apps Likely to Be Included

Criticism Over Exclusion of Mart and Delivery Apps... Expansion of Consumer Channels Expected

[Asia Economy Reporter Jang Sehee] The government is shortening the implementation period of the credit card cashback program included in the second supplementary budget (supplementary budget) from the original 3 months to 2 months. This is due to a reduction of 400 billion won during the National Assembly's supplementary budget review.

On the 24th, the Ministry of Economy and Finance stated, "The government will shorten the implementation period from the original 3 months to 2 months, reflecting the results of the supplementary budget review," and added, "The implementation timing, originally set for August, will be adjusted to be decided later depending on the quarantine situation."

For example, if the average monthly spending from April to June was 1 million won, and the spending in the starting month of the program was 1.53 million won, then 10% of the additional spending exceeding 3%, which is 500,000 won, i.e., 50,000 won, will be refunded. The government had previously planned to refund up to 300,000 won in card points, 100,000 won per month, for credit and debit card spending exceeding 3% more in August to October compared to the second quarter. At that time, spending at department stores, large marts, online shopping malls, luxury specialty stores, and entertainment establishments was excluded from the eligible spending.

However, as the number of new COVID-19 cases intensified, reaching around 1,800, there were criticisms that quarantine and economic policies were out of sync. Therefore, the implementation timing was postponed from the original August. It is highly likely to start after September, depending on the future COVID-19 developments.

Meanwhile, regarding the credit card cashback policy the government is promoting, delivery apps are expected to be included as eligible spending places. On the 15th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said at the National Assembly Budget and Accounts Committee plenary meeting, "When designing the credit card cashback, the main purpose was to encourage consumption at local small businesses, self-employed, and small merchants' restaurants rather than at department stores, specialty stores, or luxury goods stores," adding, "In the case of delivery apps, we are considering including them."

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