Ontong Daejeon Celebrates Its First Anniversary, Continues Success and Coexistence... Embracing Local Alley Businesses

Data quantifying the regional economic ripple effects obtained through the publication of Ontong Daejeon. Provided by Daejeon City.

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The local currency of Daejeon, Ontong Daejeon, has celebrated its first anniversary. So far, the number of Ontong Daejeon app subscribers has reached 70% of the local economically active population, and it is evaluated as a strong support for the recovery of the local economy, which was contracted due to COVID-19.

Following the successful results over the past year, Ontong Daejeon is expected to take on the role of embracing neighborhood commercial districts this year by adding a win-win platform.

According to Daejeon City on the 14th, since its launch in May last year, Ontong Daejeon has recorded 560,000 subscribers out of approximately 790,000 economically active people in the region as of last month. During this period, the cumulative issuance amount reached 1.43 trillion KRW.

The Daejeon-Sejong Research Institute estimated that over the past year, the additional net consumption generated within the region by Ontong Daejeon issuance amounted to 350 billion KRW, the amount shifted from other regions to Daejeon for purchases was 200 billion KRW, and consumption shifted from large marts or online shopping to small business owners reached 390 billion KRW.

Meanwhile, Ontong Daejeon has also established itself as a brand for the local livelihood economy. For example, the city contributed to the recovery of the local economy, which was contracted due to COVID-19, through policy issuance of 160 billion KRW, including Daejeon-type emergency disaster livelihood support funds and temporary living support funds.

In particular, during the large-scale consumption promotion event (Ontong Sale) held in November last year, it was confirmed that small business owners’ sales increased by 13%, showing a consumption stimulation effect.

Also, the ‘Ontong Daejeon Mall’ and ‘Ontong Daejeon Delivery Platform,’ established in September last year to support non-face-to-face sales for local small business owners, demonstrated Ontong Daejeon’s role as a representative economic platform of the region beyond a simple payment function.

However, behind the issuance and success of Ontong Daejeon, the city confirmed a concentration phenomenon biased toward specific regions and industries. The usage rate in old downtown commercial districts and traditional markets was relatively low, resulting in a limitation where the issuance effect of Ontong Daejeon did not spread evenly throughout the region.

Accordingly, this year, the second year of Ontong Daejeon issuance, the city plans to revise and supplement policies to enhance the effect of local currency issuance. While maintaining the successful economic recovery achievements across the region over the past year, the focus will be on resolving consumption imbalance, platform advancement, strengthening citizen participation, and increasing usage convenience to enhance the positive functions of Ontong Daejeon.

To this end, the city will first expand cashback within traditional markets and strengthen merchant restrictions so that Ontong Daejeon can be used in a wider variety of industries.

When using Ontong Daejeon at 4,338 stores distributed across 29 traditional markets in the jurisdiction, an additional 3% cashback will be provided, and uses that are somewhat detached from the purpose of supporting small business owners, such as golf course fees and university tuition payments, will be excluded from membership.

For functional enhancement of the platform, efforts will be made to establish Ontong Daejeon Mall as a regional online comprehensive shopping mall and to build a permanent online live broadcast sales network. Additionally, the city plans to continue targeted support for neighborhood commercial districts by separately allocating 10 billion KRW for small business management funds and implementing special support that lowers guarantee commission rates.

Improvements in convenience functions for Ontong Daejeon users will be made by installing an automatic recharge function on the platform that recharges according to the amount and recharge date designated by the user, and by adding a function that allows transfers between subscribers.

To strengthen Ontong Daejeon’s social role, the city will expand the Ontong Sharing donation function and also expand the direct approval payment system linked with the social cooperative Pumassi Village and delivery apps.

Previously, the city established the nation’s first local currency-linked donation service on Ontong Daejeon and promoted ‘Companion Agreements’ for corporate social contribution and the spread of donation culture, as well as additional cashback payments for local bookstores, thereby fostering community strengthening through the Ontong Daejeon platform.

The city has set the issuance scale of Ontong Daejeon at 1.3 trillion KRW this year, and a cashback budget of 130 billion KRW, including national funds, has been secured.

Meanwhile, on the 14th, the city will hold a ‘Ontong Daejeon 1st Anniversary’ ceremony at Sky Road in Eunseongjeongi Street, Jung-gu, Daejeon. About 20 people, including Mayor Heo Tae-jeong of Daejeon, Chairperson Kwon Jung-soon of the Daejeon City Council, citizens, and representatives of small business owners, are expected to attend.

Along with the ceremony, the city will also hold the ‘Ontong Daejeon 1st Anniversary Ontong Sale’ until the 31st of this month. During Ontong Sale, from the 1st to the 13th of this month, users can recharge up to 500,000 KRW regardless of the recharge or usage amount, and 15% of the usage amount will be paid back as cashback.