Starbucks Only for 'Seoul Citizens'? ... How to Use National Support Funds at Franchises

On the afternoon of the 2nd, a notice indicating the availability of emergency disaster relief funds is posted at a store in Tongin Market, Jongno-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Kim Soyoung] The government plans to provide a mutual growth national support fund of 250,000 won each to about 88% of the population as early as the end of this month. Similar to the emergency disaster relief fund distributed last year, it can be used at local marts, convenience stores, and restaurants, but usage is restricted at large marts, department stores, online malls, entertainment businesses, golf courses, and the like.

The national support fund can be received in the preferred form among credit/check cards, prepaid cards, and local gift certificates, and can be used in the area where the recipient is registered as a resident (metropolitan city/province). It is generally usable at small business stores such as traditional markets, local marts, restaurants, bakeries, hospitals, and hair salons.

However, it cannot be used at large marts, department stores, online shopping malls, large electronics stores, entertainment businesses, golf courses, karaoke rooms, lottery shops, duty-free shops, etc. However, when using delivery apps, payment can be made on-site upon meeting the delivery person, and in the case of department stores and large marts, it is expected to be usable at leased stores within those establishments.

According to the Ministry of Economy and Finance, the Ministry of the Interior and Safety, and related departments on the 2nd, if the franchise visited by the consumer is a franchised store, the disaster relief fund can be used at any store located in the consumer’s residential area. Representative examples include franchise stores commonly seen in neighborhoods such as Paris Baguette, Kyochon Chicken, Olive Young, and convenience stores.

On the other hand, direct management stores can only be used if the user lives in the location (headquarters area). For example, Starbucks, a coffee franchise operated 100% as direct management stores, allows only Seoul citizens, where the headquarters is located, to use the disaster relief fund at Starbucks regardless of region. Netizens have responded with various opinions such as "Buying coffee with disaster relief funds? Is that even disaster relief money?", "It’s a bit much that only Seoul is eligible," "What a strange exception," "If it’s about boosting consumption, does it really matter where you buy?", and "Think about small business owners."

Meanwhile, disaster relief funds cannot be used for paying taxes, insurance premiums, or automatic transfers for transportation and communication fees.

The government plans to largely follow last year’s standards but will review whether improvements are needed and finalize the list of restricted businesses and the usage period for the support fund.