100 Billion Won Worth of Songpa Sarang Gift Certificates Sold Out in 8 Days

Songpa-gu Plans Second Issuance Around May-June to Revitalize Local Economy Weakened by COVID-19

On April 1st, Park Seong-su, the mayor of Songpa District, visited a flower shop located in Pungnap-dong and purchased a bouquet using Songpa Love Gift Certificates.

[Asia Economy Reporter Jong-il Park] Songpa-gu (Mayor Park Seong-su) announced on the 10th that the ‘Songpa Love Gift Certificate’ was sold out on the afternoon of the 8th.

Songpa-gu sold all 10 billion KRW worth of Songpa Love Gift Certificates within 8 days since issuing them on April 1 to revitalize the local economy, which had been depressed due to the COVID-19 pandemic.

The ‘Songpa Love Gift Certificate’ is a mobile gift certificate that can be used to make payments via QR code at about 9,000 Zero Pay affiliated stores within Songpa-gu.

It can be purchased and used for payment through smartphone apps such as ▲Bizplay ▲CheckPay ▲Moneytree.

At the time of issuance, Songpa-gu prepared exceptional benefits to promote the Songpa Love Gift Certificate. Buyers received a 15% discount when purchasing the gift certificates and were refunded 5% of the payment amount when purchasing goods with the certificates, totaling a 20% discount.

Additionally, income tax deductions for using the Songpa Love Gift Certificates until June reach up to 60%. When used at traditional markets, the income deduction can be as high as 80%.

Songpa-gu explained that the exceptional benefits of the Songpa Love Gift Certificate received great responses through online mom cafes even before issuance. It added that many inquiries were made as the usefulness of local currency, which helps household finances and revitalizes the local economy, was shared.

Mayor Park Seong-su of Songpa-gu also rolled up his sleeves. On the first day of issuance, April 1, he made the first payment with the Songpa Love Gift Certificate by purchasing a bouquet at a flower shop in Pungnap-dong.

As a result, more than 1 billion KRW worth of certificates were sold on the first day alone, and thereafter, an average of 1.2 to 1.3 billion KRW worth was sold daily.

Songpa-gu explained that after the Songpa Love Gift Certificates sold out, local residents who were unaware of the sales called to express their regret or left their contact information asking to be notified if additional certificates were issued.

The Songpa Love Gift Certificate can only be used within the Songpa area and is restricted from use in large stores or gambling-related businesses, which is expected to greatly help increase sales for local small business owners.

Songpa-gu expects that the issuance of 10 billion KRW worth of gift certificates will have a ripple effect up to three times that amount through consumption circulation.

Songpa-gu added that it is preparing for a second issuance around May to June through securing additional budgets.

Mayor Park Seong-su of Songpa-gu said, “I thank the residents of Songpa-gu for their great response, which allowed the Songpa Love Gift Certificates to sell out within 8 days of issuance,” and added, “We will do our best to revitalize the local economy, which has been depressed due to the prolonged COVID-19 situation.”