[Asia Economy Reporter Park Hyesook] Incheon City has decided to extend the 10% cashback benefit of the local currency 'Incheon e-eum' until the end of December this year.
This is to boost sales for small business owners and self-employed individuals struggling due to the prolonged COVID-19 pandemic and to stimulate local consumption.
Since raising the cashback rate from 4% to 10% in March this year, the city has extended the increased cashback period three times until the end of this month, and this is the fourth extension.
Accordingly, until the end of December, users will continue to receive a 10% cashback benefit on payments up to 500,000 KRW per month, and a 1% cashback on payments exceeding 500,000 KRW up to 1,000,000 KRW per month.
The number of Incheon e-eum subscribers totals 1,347,000, accounting for 82% of Incheon’s economically active population of 1,640,000. Based on the eligible population aged 14 and above, which is 2,600,000, it corresponds to 52%.
The total payment amount reached 2.3558 trillion KRW as of the 25th of this year (cumulative payment amount since 2019 is 3.9023 trillion KRW), and it is expected to reach 3 trillion KRW by the end of the year.
From July to September, the average monthly payment through Incheon e-eum was 270.2 billion KRW, and the average daily payment was 8.8 billion KRW. This is outstanding among local currencies nationwide, and it recorded the largest transaction volume in the country as of the end of August this year, following last year.
An official from Incheon City stated, "The extension of the 10% cashback benefit of Incheon e-eum until the end of the year will increase household consumption, and the increased consumption will lead to sales for small business owners, contributing to the recovery of the local economy, which is in crisis due to COVID-19."
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