KT Recruits Merchants for Busan Dongbaekjeon 'Zero Fee' QR Payment

[Asia Economy Reporter Koo Chae-eun] KT is introducing a QR payment service with no fees at all to enhance the local economic revitalization effect of Dongbaekjeon, the local currency of Busan City.

On the 21st, KT and Busan City announced that after recruiting QR payment merchants, distributing QR kits, and promoting to citizens, QR payments will be fully available starting from the 9th of next month. Upon applying to become a QR payment merchant, approved applicants will receive a free QR payment kit and promotional stickers.

Until now, Dongbaekjeon could only be used by charging a certain amount into one's account and paying with a linked card. Additionally, card fees were incurred with each payment, placing a heavy burden on small business owners. Payment amounts were also settled several days later, limiting flexible fund management.

The newly introduced QR payment for Dongbaekjeon does not incur card fees, and the payment amount is settled the next day and deposited into the bank account, making fund flow management more effective. At the time of payment, users simply press the payment button on the Dongbaekjeon smartphone application and enter the amount. Payments can be made without carrying a card, allowing those who do not carry wallets to use Dongbaekjeon without any burden.

KT and Busan City predict that once Dongbaekjeon QR payments become active, the annual card fee burden on small business owners will decrease by 3 billion KRW. Based on Busan City's Dongbaekjeon issuance amount of 1 trillion KRW, the annual card payment fees incurred by small business owners are estimated at 5 billion KRW. Ulsan City, which previously introduced local currency QR payments, reportedly saved about 650 million KRW in card payment fees over approximately one year since August last year.

To commemorate the launch of the Dongbaekjeon QR payment service with Busan City, KT will hold a prize event until the 15th of next month. Small business owners who apply for QR merchant registration via mobile will have a chance to win prizes such as large TVs, air purifiers, coffee machines, and Bluetooth speakers that can be used in their stores.

Kim Jong-chul, Head of KT Blockchain Biz Center (Executive Director), said, “QR payment is an essential payment method in regions where local currencies are active. We will continue to create cases that help revitalize the local economy through various technologies and services for small business owners.”