If You Use Your Card More, Get Up to 100,000 Won Refund... How to Apply for the 'Consumer Win-Win Support Fund'

Support Fund Application Starts from the 1st
5-Day Rotation System for the First Week
Cashback Calculated After Designating 'Dedicated Card Company'
Careful Review of Cashback Eligible Spending Criteria Needed
Note 'Monthly Limit of 100,000 KRW per Person'

A win-win consumption support fund system that provides 10% cashback on credit card usage exceeding the average will be implemented. The photo shows a credit card and other information signs posted at a store in Jung-gu, Seoul, on the afternoon of the 27th of last month. / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] The 'Credit Card Cashback (Win-Win Consumption Support Fund),' which effectively returns a portion of the excess amount spent beyond the average credit card usage as cash, starts today (1st). This system will be implemented until next month to revitalize face-to-face consumption, and if individuals designate a dedicated card company and apply, the cashback amount will be automatically calculated and updated.

◆10% Refund on Amount Exceeding Average Card Usage

The cashback system refunds 10% of the excess amount if the monthly card usage increases by 3% or more compared to the average monthly usage in the second quarter (April to June).

For example, if office worker A has an average monthly credit card usage of 1,000,000 KRW and spends 1,530,000 KRW this month, 10% of the 500,000 KRW (which is the excess 530,000 KRW minus 3% of the average usage, 30,000 KRW) will be refunded, amounting to 50,000 KRW.

The eligible participants are those aged 19 or older who have credit or check card usage records under their name in the second quarter of this year. Foreigners are also included.

◆Monthly Limit of 100,000 KRW per Person...Note the Consumption Criteria for Cashback

The system is in effect for two months, October and November, and the cashback amount is limited to 100,000 KRW per person per month, so caution is required. Also, the total budget is 700 billion KRW, and the program may end early if funds are exhausted.

Since this system is implemented to activate sluggish face-to-face consumption due to the COVID-19 pandemic and to support small business owners, some consumption activities are excluded from cashback eligibility.

The spending criteria included in the cashback eligible amount differ, so consumers need to be cautious. / Photo by Yonhap News

For example, consumption at large supermarkets, department stores, or large online malls (Coupang, Gmarket, Auction, etc.) is not eligible for cashback, but consumption at corporate supermarkets, delivery applications (Baedal Minjok, etc.), food ingredient e-commerce (Market Kurly, etc.), and Starbucks are included.

Non-consumption expenditures such as annual fees, taxes, and insurance premiums are also excluded. However, usage at specialized online malls for travel, tourism, exhibitions, performances, culture, and sports is recognized.

The card companies participating in the Win-Win Consumption Support Fund system are nine in total: Lotte, BC, Samsung, Shinhan, Woori, Hana, Hyundai, KB Kookmin, and NH Nonghyup. Among these nine card companies, users can designate the one they use as their 'dedicated card company' and apply. The dedicated card company provides all services at once, including usage aggregation, cashback calculation, and payment.

◆Application by 5-Day Rotation System for the First Week

The system starts on the 1st, and for the first week, applications are accepted by a 5-day rotation system linked to the last digit of the birth year. People born in years ending with 1 or 6 can apply on the 1st, those ending with 2 or 7 on the 5th, 3 or 8 on the 6th, 4 or 9 on the 7th, and 5 or 0 on the 8th.

After the first week, applications can be made at any time during the project period in October and November regardless of birth year. However, cashback is recognized from the expenditure on the 1st regardless of the application date.

The government operates a representative number for the Win-Win Consumption Support Fund during the system period to provide detailed information. Also, the call centers of the nine dedicated card companies can provide detailed information about the system.