Local Currency 'Ontong Daejeon' Becomes a Livelihood Economy Platform

Goh Hyun-deok, Director of the Job Economy Bureau. Provided by Daejeon City

The local currency of Daejeon, ‘Ontong Daejeon,’ is entering its third year of issuance next year. Since its launch in May last year, Ontong Daejeon has become a beacon of hope for local small business owners and self-employed individuals amid the spread of COVID-19, serving as a strong pillar that prevents the outflow of local capital and nurtures the regional economy.

This year, Ontong Daejeon achieved both ‘quantitative’ growth?with a significant increase in issuance volume and number of subscribers?and ‘qualitative’ growth, earning excellent results in various public opinion polls and government evaluations.

First, the issuance volume of Ontong Daejeon this year reached 1.9 trillion KRW, an increase of over 150% compared to the previous year. The number of subscribers rose by 58% to 760,000, and the number of cards issued surged by 41% to 990,000.

Recently, Ontong Daejeon was honored with the Grand Prize and the Excellence Award consecutively at the ‘Korea Brand Awards’ hosted by the Ministry of Trade, Industry and Energy and the ‘2021 Local Currency Best Practice Evaluation’ hosted by the Ministry of the Interior and Safety.

The positive impact on the local economy is cited as the reason behind these internal and external achievements. For example, it is estimated that the net consumption amount in the region increased by 750 billion KRW due to the issuance of Ontong Daejeon, and the sales transferred from large marts and online platforms to local small businesses reached 820 billion KRW. Additionally, the amount switched from other regions to local consumption is estimated at 440 billion KRW.

The city plans to implement strategies to revitalize the local economy through Ontong Daejeon next year as well. First, the issuance volume of Ontong Daejeon will be increased to 2 trillion KRW, while maintaining this year’s recharge limit (500,000 KRW per person) and cashback rate (10%).

This policy aims to increase sales for small business owners and the self-employed who have been hit hard by COVID-19, with the city covering any shortfall in funds beyond government support through municipal finances.

Above all, next year will focus on enabling Ontong Daejeon to strengthen its role as a community function within the region. To this end, the city will take responsibility for the overall distribution and management of Ontong Daejeon, while the autonomous districts will handle support for small business owner-focused projects, sharing roles to boost sales and invigorate the local economy.

Specifically, the Ontong Daejeon app will open channels for the five autonomous districts to support district-specific specialized projects related to Ontong Daejeon, such as district policy allowances and plus discount affiliated stores, along with budget support and year-end awards.

Policy issuance to secure the sustainability of Ontong Daejeon will also be expanded. Next year, to achieve the policy issuance target of 100 billion KRW, the ‘Priority Review System for Ontong Daejeon Usage’ will be extended to the autonomous districts, and active participation from government ministries, educational institutions, public institutions, and the private sector based in Daejeon will be encouraged. Incentives such as year-end bonuses will also be prepared for departments and institutions excelling in policy issuance.

The scale of additional cashback support to alleviate consumption imbalances by region, class, and industry will also be expanded. This year, the city promoted a 3% additional cashback for traditional markets to reduce regional consumption imbalances; next year, this will be expanded from 29 traditional markets to 50 traditional markets and shopping districts, with additional cashback support provided year-round.

Measures to provide additional cashback to users of businesses subject to gathering bans and time restrictions, who have been struggling due to COVID-19, are also under consideration.

Above all, the city will continue to develop Ontong Daejeon’s functions so that it can evolve beyond a distribution tool into a ‘livelihood economy platform’ that realizes greater value by focusing on activating citizen-centered policy functions and strengthening the local community.

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