Government "10-11월 Sangsaeng Consumption Support Fund of 801.9 Billion Won Fully Paid"

"Card Spending Growth Rate in October-November at 13%...Significant Contribution to Q4 Consumption Recovery"
"World's First Consumption-Driven Incentive Policy...Active Use in Policy After KDI Effect Analysis"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced on the 15th that a total of 801.9 billion KRW in Win-Win Consumption Support Fund (cashback) was generated over the two months of October and November. Seeing strong public response, they plan to thoroughly analyze the project's effects and actively reflect them in future policies.

The Ministry of Economy and Finance reported that 15.66 million people participated in the project over the two months. High enthusiasm was drawn from the early stage in October. According to the ministry, 14.83 million people participated in October, and 830,000 in the previous month. The amount of support funds generated was 404.2 billion KRW in October and 397.7 billion KRW last month. The number of recipients was 8.54 million (55% of total participants) in October and 8.19 million (52%) last month. As of last month, the average cashback per person was 49,000 KRW. The number of people who received the maximum limit of 100,000 KRW was 1.8 million (22% of cashback recipients).

The ministry judged that the cashback project led to a revitalization effect on the domestic economy. According to the ministry, card usage in October and November increased by 13.4% and 13.7%, respectively, compared to the same months the previous year. This marked a double-digit growth rate for two consecutive months. This is 5 to 6 percentage points higher than the 7.9% in July, 7.2% in August, and 8.8% in September. It is difficult to view this simply as a 'base effect' compared to last year. A ministry official said, "The cashback project appears to have contributed significantly to the recovery of consumption in the fourth quarter."

The ministry announced that the cashback of 379.9 billion KRW for last month and an additional 16.7 billion KRW for October will all be paid out by this morning. The additional 16.7 billion KRW cashback arose during the October settlement process and includes retroactive payments for November applicants for October, as well as delayed purchases and payment cancellations of October card usage.

Cashback can be used without restrictions on usage locations. It is available at all domestic merchants that have contracts with card companies. Cashback can be used until June 30, next year, and any remaining balance will expire if not used by then. If other support funds from the government or local governments, such as the National Support Fund, remain, the funds with earlier expiration dates will be deducted first in order.

A ministry official emphasized, "The cashback project is a consumption inducement incentive policy first attempted in the world, based on Korea's highly developed credit card infrastructure and information and communication technology (ICT). Going forward, the government plans to actively utilize the project effects in policy formulation by thoroughly analyzing private consumption inducement and sector-specific consumption guidance through the Korea Development Institute (KDI)."

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