Donghae City Secures Additional 2.19 Billion Won in National Funding for Donghae Pay... 20% Incentive Increase Expected

A Total of 2.85 Billion Won in National Funding Secured This Year
Highest Amount Since Gift Certificates Were First Issued in 2020
Synergy Effect: Reducing Living Expenses for Citizens and Boosting Sales for Small Businesses

On October 15, Donghae City in Gangwon Province announced that it expects to continue providing the increased 20% incentive for Donghae Pay, which has been in effect since the Mureung Festival in September, thanks to the additional securing of 2.19 billion won in national funding for Donghae Pay in 2025. The city stated that this amount is the second highest in the province, following Chuncheon City.

Aerial view of Donghae City Hall. Provided by Donghae City

According to the city, this additional national funding was secured by matching it with 3.6 billion won from the city budget as part of efforts to overcome the ongoing economic crisis affecting residents. The total national funding secured this year amounts to 2.85 billion won, an increase of 1.66 billion won, or 140%, compared to last year’s 1.19 billion won. Donghae City noted that this is the highest figure since the issuance of gift certificates began in 2020.

Currently, Donghae Pay can only be used at approximately 4,900 affiliated small businesses with annual sales of less than 3 billion won, and from January to September this year, it has driven about 48 billion won in local spending.

In particular, since September, the incentive rate was raised from 10% to 20% to accommodate demand during the Mureung Festival, Chuseok, and the year-end season. As a result, the total amount of incentives paid in one month increased significantly from 550 million won to 1.5 billion won. The city analyzed that this increase in incentives has had a positive effect on restoring consumer confidence and boosting sales for small businesses, thereby contributing to the formation of a virtuous economic cycle in the region.

Shim Kyueon, Mayor of Donghae City, stated, "This additional national funding will serve as a solid foundation for the continued activation of Donghae Pay and the increased incentive support. Even under challenging economic conditions, we expect it will help citizens reduce their living expenses and support small business owners and self-employed individuals by increasing their sales, thereby revitalizing the local economy."

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