Namwon-si, Local Currency Operation Reform Plan... Cancellation of Registration for 100 Affiliate Stores

The Ministry of the Interior and Safety has recommended that local governments limit the registration criteria for local love gift certificate加盟店s to stores with annual sales of 3 billion KRW or less.

Namwon City in Jeonbuk is deeply concerned as it fears immediate inconvenience to its citizens.

According to the city on the 30th, the Ministry of the Interior and Safety's 'Comprehensive Guidelines for the Local Love Gift Certificate Issuance Support Project' states that registration is restricted if annual sales exceed 3 billion KRW, and existing加盟店 registrations will be canceled.

Namwon Love Gift Certificate Affiliate Stores
Photo by Namwon City

If this加盟店 registration criterion is applied, about 100 businesses in the city are expected to have their加盟店 registrations canceled, and these deregistered businesses will no longer be able to accept Namwon Love Gift Certificates.

So far, the city has requested the Ministry of the Interior and Safety to apply exceptions for rural areas with relatively poor living conditions compared to urban areas, exceptions for places selling agricultural and livestock products, agricultural cooperatives, and agricultural corporations, as well as transitional measures for existing加盟店s. However, the ministry responded that only places with actual sales by individual farmers and non-profit businesses such as 'local food direct stores' are exempted.

The reason for the city's concern is that part of the discount amount from issuing Namwon Love Gift Certificates is supported by national funds, and this year, out of the 11 billion KRW discount support fund, 5.8 billion KRW is from national funds, which is not a small amount.

If the city does not follow the Ministry of the Interior and Safety's guidelines, it will immediately face penalties on next year's discount support funds and will also lose incentives.

Moreover, as Namwon City has a low fiscal independence ratio, it is putting great effort into securing national funds, and it cannot help but worry that rejecting this recommendation may cause setbacks in securing other national fund projects.

Meanwhile, the personal holding limit for Namwon Love Gift Certificates issued via card and mobile will be lowered from the existing maximum of 2 million KRW to 1.5 million KRW, and the monthly purchase limit per person will also be reduced from 1 million KRW to 700,000 KRW, while maintaining the current 10% discount rate on gift certificate purchases.

A city official said, "If the revised Ministry of the Interior and Safety guidelines are applied, businesses closely related to citizens' lives such as Nonghyup Hanaro Mart, gas stations, large hospitals, and academies will be subject to cancellation, which may cause inconvenience to citizens."

He added, "Since this policy aligns with the purpose of supporting small business owners and revitalizing the local economy through the issuance of local love gift certificates, we are considering various aspects and ask for the understanding of our citizens."

Meanwhile, as of May 2023, there are about 4,000加盟店s where Namwon Love Gift Certificates, purchasable at 68 financial institutions with a maximum 10% discount rate, can be used.

Namwon = Asia Economy Honam Reporting Headquarters Reporter Jeong Young-gwon baekok@asiae.co.kr

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