Restarting the Economic Engine... Ulsan Records Nation's Highest 15.2-Point Increase in Small Business BSI

Local Companies and Public Institutions Join In, Purchasing 9.1 Billion Won in Local Gift Certificates Across 18 Firms
Implementation of Hopeful and Reliable Special Guarantee for Small Businesses
Tailored Business Support and More

Ulsan, known as the "industrial capital," is quietly writing a powerful economic turnaround story.

The city of Ulsan is leading the local economic recovery, recording the highest rate of increase nationwide in the Business Survey Index (BSI) as perceived by small business owners.

According to the October regional BSI for small business owners, recently announced by the Ministry of SMEs and Startups, Ulsan scored 81.3, marking a 15.2-point increase over the previous month. This is more than six times the national average increase of 2.5 points, making it the highest growth rate in the country.

The November regional outlook BSI for small business owners also reached 93.8, showing the highest increase of 19.8 points compared to the previous month, further raising expectations for economic recovery among small business owners.

The BSI for small business owners is a figure announced monthly by the Ministry of SMEs and Startups, quantifying the actual economic sentiment of small business owners and traditional markets.

This performance is analyzed as the result of a "three-pronged policy" promoted by Ulsan City-expanding the local gift certificate (Ulsan Pay) program, providing stable financial support, and offering tailored business support-which, when combined with the government's consumer coupon policies, created a synergistic effect.

First, Ulsan City, together with the Ulsan Chamber of Commerce and Industry, launched a "local gift certificate purchase promotion campaign" to support small businesses. Eighteen companies, along with workers and public institutions, participated, purchasing 9.1 billion won worth of local gift certificates, thus establishing a collaborative model to boost local consumption.

Additionally, to stimulate local spending and support small businesses, Ulsan City increased the Ulsan Pay cashback rate and monthly limit from 7% and 200,000 won at the beginning of the year to 10% and 500,000 won starting June 20, and to 13% and 300,000 won from September. There were also additional benefits: a 5% extra rebate for using Ulsan Pay at "Good Price" stores and traditional market merchants, special support of 7-10% for Ulju-gun, which was designated as a special disaster area due to wildfires, and a 5% special discount during the Korea Grand Festival. In total, a budget of 27.9 billion won was secured for Ulsan Pay issuance to actively encourage consumption.

As a result, since the cashback increase in June, the number of affiliated merchants has grown by 2,000 and the number of users by 40,000. The average daily usage amount of Ulsan Pay has also doubled, demonstrating a tangible effect in boosting local consumption.

Furthermore, Ulsan City established the "Hopeful and Reliable Special Guarantee" for small businesses, which operates by having the Ulsan Credit Guarantee Foundation provide credit guarantees based on low-interest funds supplied by the Bank of Korea to commercial banks, which then execute the actual loans. This has helped reduce the business burden for small business owners.

In addition, through the Small Business Happiness Dream Center, Ulsan City has invested 1.9 billion won in diverse support programs for small businesses, including business environment improvement, digital transformation, and customized consulting and training. Policies to ease business burdens, such as support for small business employment insurance premiums and the Yellow Umbrella Hope Incentive, are also being implemented.

An official from Ulsan City stated, "Active participation in consumption by citizens is the greatest driving force behind the local economic recovery," adding, "We will continue to inject vitality into the local economy through various support policies for small businesses."

Ulsan City Hall exterior. (Photo by Ulsan City Hall)

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