Securing Independent Funding Despite Government Budget Cuts
[Wando=Asia Economy Honam Reporting Headquarters Reporter Choi Kyungpil] Wando-gun, Jeollanam-do, has issued Wando Love Gift Certificates since July 2019, issuing more than 50 billion KRW annually since 2020, currently surpassing 170 billion KRW.
According to the county on the 11th, card-type certificates were introduced in 2021, and mobile-type certificates were added in 2022, firmly establishing them as local currency.
The mobile (QR payment) system allows payments without carrying a card, and since merchants do not bear any fees, the sales rate appears to have increased.
Accordingly, despite the government's decision to reduce the local currency budget compared to the previous year, Wando-gun decided to maintain the existing 10% discount rate and purchase limit at the previous year's level to stabilize the livelihoods of self-employed individuals and residents.
In contrast to other local governments that are considering reducing discount rates and purchase limits due to cuts in the government’s local currency budget and local financial conditions, the county’s maintenance of discount rates and purchase limits is expected to help increase income for small business owners within the jurisdiction and prevent capital outflow.
Heo Dongjo, Director of the Economic and Transportation Department, said, “Since 240 million KRW of the county’s own budget has been allocated to maintain the existing discount rate and purchase limit, we ask for active use of the Wando Love Gift Certificates to revitalize the local economy.”
Meanwhile, the discount rate for purchasing Wando Love Gift Certificates is 10%, with a monthly purchase limit of 500,000 KRW per person (combined for paper, card, and mobile types), and an annual purchase limit of 5 million KRW per person.
Honam Reporting Headquarters Reporter Choi Kyungpil ckp6737@asiae.co.kr
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
