Naju Sarang Gift Certificate '10% Discount Sale' Scheduled to End

[Naju=Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] The 10% discount system for purchasing the ‘Naju Sarang Gift Certificate,’ which has driven consumption promotion in the Naju commercial district and revitalized the local economy, is expected to end this month as the gift certificate sales exceed 80 billion KRW.

The city announced on the 19th that, with the budget for operating the 10% discount system nearly exhausted, it plans to lower the discount rate from 10% to 5% once cumulative sales reach 86.3 billion KRW as the cutoff point.

As of the end of last month, excluding government disaster relief funds and agricultural and fishery public service allowances, the cumulative sales of gift certificates surpassed 81 billion KRW.

It is expected to reach the target sales amount of 86.3 billion KRW (65.3 billion KRW in paper certificates and 21 billion KRW in card certificates) eligible for the 10% discount within this month.

The special discount period for paper and card-type gift certificates may vary depending on sales trends.

After the discount rate adjustment, purchasers and rechargers of both paper and card-type gift certificates will receive a 5% discount on the face value.

Since March last year, when COVID-19 began to spread in earnest, the city has continuously offered a special 10% discount on gift certificates to prevent the outflow of local funds and stimulate consumption in the depressed neighborhood commercial districts.

This year, the city made every effort to secure the budget necessary to maintain the discount rate, including 5.7 billion KRW in national funds and 2.9 billion KRW in local funds, resulting in a record high sales of 70.4 billion KRW in the first half since the first issuance in 2007.

The number of affiliated stores increased from about 1,300 to over 4,100, and since September last year, the launch of the Naju Sarang Card, which can be recharged via a smartphone app, has significantly expanded the consumer base to include younger generations.

As of this month, the number of members issued the card-type Naju Sarang Gift Certificate is estimated at about 12,600.

The Naju Sarang Gift Certificate, regardless of paper or card type, can be purchased and issued on the same day at 55 financial institutions including NongHyup and post offices, within a monthly limit of 500,000 KRW per individual.

Mayor Kang In-gyu said, “The Naju Sarang Gift Certificate has been a great help in revitalizing traditional markets and neighborhood commercial districts,” and added, “We hope that both small business owners and consumers will actively participate in using the gift certificates, which bring happiness to all.”

Naju=Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong bong2910@asiae.co.kr