[2021 National Audit] Onnuri Gift Certificate Usage Locations at 8% of Local Love Gift Certificates... Issuance Costs Twice as High

2021 National Audit of Agencies under the Ministry of SMEs and Startups

Onnuri Gift Certificate.
Photo by Asia Economy DB

[Asia Economy Reporter Lee Junhyung] It has been revealed that the usage locations of Onnuri Gift Certificates, issued to revitalize traditional markets and for other purposes, are only about 8% of those for local love gift certificates. The incidental costs of issuing Onnuri Gift Certificates were approximately twice as high as those of local love gift certificates.

According to data submitted by the Small Enterprise and Market Service and others to Kim Seonghwan, a member of the National Assembly's Industry, Trade, Energy, Small and Medium Business Committee from the Democratic Party of Korea, as of August this year, there were 196,901 Onnuri Gift Certificate affiliated stores nationwide. In contrast, the number of affiliated stores where local love gift certificates could be used was 2,350,370 as of last month, about 12 times more than the usage locations of Onnuri Gift Certificates. In the case of Nowon-gu, Seoul, the number of usage locations for Onnuri Gift Certificates and local love gift certificates were 307 and 13,806 respectively, showing a difference of nearly 40 times.

The incidental costs for issuing gift certificates were also nearly twice as high. According to Representative Kim, the incidental cost for issuing Onnuri Gift Certificates is 3% of the issuance amount. The incidental cost for issuing local love gift certificates ranges from 1.65% to 2%, meaning the incidental cost for Onnuri Gift Certificates can be up to twice as high. The incidental cost for issuing Onnuri Gift Certificates, which were issued on a scale of 4 trillion won last year, was about 111.7 billion won. During the same period, the issuance scale of local love gift certificates was 17 trillion won, more than four times larger, but the incidental cost was 312 billion won, about three times higher.

Answering, Jo Bonghwan, President of the Small Enterprise and Market Service
(Seoul=Yonhap News) Reporter Ha Saheon = Jo Bonghwan, President of the Small Enterprise and Market Service, is responding to a lawmaker's question during the National Assembly inspection of the Korea SMEs and Startups Agency and the Small Enterprise and Market Service held by the Industry, Trade, and Small and Medium Venture Business Committee at the National Assembly on October 14, 2021. [Photo by the National Assembly Press Photographers Group]
toadboy@yna.co.kr
(End)

＜Copyright(c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

At the National Assembly's audit of institutions under the Ministry of SMEs and Startups held that day, Representative Kim pointed out, "Although the purpose of issuance is similar, it is not easy for local residents to use Onnuri Gift Certificates," adding, "Because there are not many usage locations, cases of 'gang (discount resale)' also occur." He added, "The purpose of issuing both Onnuri Gift Certificates and local love gift certificates is to help socially vulnerable small business owners and self-employed people who are struggling due to COVID-19. Considering this purpose, they should play a role in supporting all small business owners in Korea, not just some traditional markets."

In response, Cho Bonghwan, Director of the Small Enterprise and Market Service, said, "Onnuri Gift Certificates focus on traditional markets, while local love gift certificates focus on various small businesses in local commercial districts," and added, "If mobile and electronic gift certificates are actively utilized, the incidental costs can be reduced to the 1% range, and illegal distribution can also be prevented."

Regarding Representative Kim's criticism that the economic effect of Onnuri Gift Certificates cannot be confirmed, Director Cho said, "There is no academically analyzed data," and added, "We will closely examine it including local currencies."

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