Busan City Differentiates Dongbaekjeon Cashback by Franchise Store Sales Amount

Busan local currency Dongbaekjeon cashback will be paid differentially from 0 to 7% depending on the sales amount of affiliated stores.

Busan City will change its policy from July to a differential cashback payment method based on the sales amount of affiliated stores, so that citizens can receive more benefits and small business owners with small scale can receive more support in relation to the issuance of the local currency Dongbaekjeon.

In February this year, the Ministry of the Interior and Safety judged that ▲the most objective standard that meets the original purpose of supporting small business owners with local love gift certificates is sales, and restricted payments to affiliated stores with sales exceeding 3 billion KRW, and ▲announced guidelines to reduce the personal holding limit to 1.5 million KRW for reasons such as promoting consumption.

This year, the national subsidy Busan City received from the government is 23 billion KRW. Busan City's policy change is intended to consider the Ministry of the Interior and Safety's guidelines and efficiently use the budget according to the 2023 Dongbaekjeon issuance target of 1.6 trillion KRW. The policy was decided to be implemented from the second half of the year after deliberation and discussion by the local currency policy committee on April 24.

Dongbaekjeon Logo.

The core of this policy is differential cashback support by sales amount bracket. For affiliated stores with sales of 1 billion KRW or less (93% of all affiliated stores), Busan City provides 7% cashback by adding 2% to the basic 5% cashback.

For affiliated stores with sales exceeding 1 billion KRW but less than or equal to 3 billion KRW (4% of all affiliated stores), the existing 5% cashback is maintained, and for large affiliated stores exceeding 3 billion KRW (3% of all affiliated stores), payment is allowed but cashback is not provided.

Busan City expects that this change will enable rational execution of the limited budget while aligning with the policy purpose of supporting small and medium-sized business owners.

In accordance with the Ministry of the Interior and Safety's guidelines, the city also plans to implement a policy to reduce the personal holding limit of Dongbaekjeon from 2 million KRW to 1.5 million KRW to suppress accumulation and non-use of local love gift certificates or the purchase of high-priced goods, thereby inducing local fund circulation and consumption promotion.

After the policy implementation in July, if the total amount of recharge funds, cashback, and policy support funds exceeds 1.5 million KRW, usage is possible but additional recharge is not allowed. Therefore, holders exceeding 1.5 million KRW must use the amount below 1.5 million KRW first before recharging.

Shin Chang-ho, Director of the Digital Economy Innovation Office of Busan City, said, “We hope this Dongbaekjeon policy change will be understood as a policy for efficient execution of limited budgets and sustainable promotion of the Dongbaekjeon project in the future.”

He added, “Although there may be some confusion in the early stages of implementation, we ask citizens to recognize through this opportunity that the purpose of issuing Dongbaekjeon is to support small business owners, and the city will continue to do its best to make Dongbaekjeon loved by both small business owners and citizens.”

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