[Column] Half-baked Expansion of 'Dining Out Coupon Delivery Apps'

(Photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] "We will consider including 'delivery applications' as eligible for dining-out coupons and allowing the use of non-face-to-face coupons even when social distancing levels are raised."

This was stated by Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, while presiding over the Central Disaster and Safety Countermeasure Headquarters meeting on the 26th. The government intends to first expand the usage of dining-out coupons to non-face-to-face sectors among the eight major consumption coupons it is promoting to revitalize them.

However, the government did not specify the implementation timing on this day. Delivery apps enable non-face-to-face transactions. When ordering by phone, payment must be made upon receiving the food unless a bank transfer is done. In contrast, with delivery apps, payment can be made simultaneously with the order. If the request "Please leave it at the door" is written in the delivery instructions, there is no direct contact between the delivery person and the consumer. Ultimately, the delay in implementation is not due to the recent surge in COVID-19 cases but because other tasks remain.

The dining-out coupon system refunds 10,000 KRW on the next dining occasion if a consumer pays 20,000 KRW or more three times at dining establishments from Friday 4 PM to Sunday midnight in one go. For card companies to issue dining-out coupons, they need to track how many times payments of 20,000 KRW or more were made during that period. If payment is made directly by card at a restaurant, the card company can immediately recognize this, but if payment is made through a delivery app, the card company cannot access this information. This is because a Payment Gateway (PG) company intermediates between the card company and the consumer in delivery app transactions. Currently, PG companies do not provide detailed information to card companies, so to track consumers’ dining frequency, a system must be established for PG companies to share relevant information with card companies.

The government is aware of this. However, it was only on the afternoon of the day it announced that payments via delivery apps would be included in dining counts that it met with representatives from card companies and PG companies to discuss building the system. The government’s stance is that "there appear to be no particular issues with system construction," but the sequence of actions has been significantly reversed.

One of the key factors for policy success is "credibility." If the policy cannot be implemented as announced, it could increase public distrust in government policies overall. This is why the government should remember the proverb, "Even when crossing a stone bridge, tap it first."