Namwon City in Jeonbuk announced on the 20th that, following the Ministry of the Interior and Safety's revision of the 'Local Love Gift Certificate Operation Guidelines,' starting July 31, business establishments with annual sales exceeding 3 billion KRW will be restricted from registering as affiliated stores or will have their registration canceled. Additionally, the individual purchase limit will be adjusted to within 700,000 KRW per month, and the holding limit will be set to a maximum of 1.5 million KRW.
This revision appears to be in response to issues identified in February by the Ministry of the Interior and Safety, where gift certificates were being used at places such as large hospitals and large marts, which are not considered small businesses, aiming to operate the system in line with the purpose of supporting small business owners.
Notification of Change in Administrative Safety Department Operation Guidelines for Namwon Love Gift Certificates. [Photo by Namwon City]
The Ministry of the Interior and Safety has set July as the guideline and stated that local governments that have not implemented the revised guidelines will face recovery of this year's national funds or penalties on next year's national funds.
The city has notified affiliated stores classified as having annual sales exceeding 3 billion KRW, based on card company information, of the restriction (cancellation) of registration and will proceed with the cancellation process.
Additionally, 100 business establishments are expected to be restricted (canceled) from being affiliated stores. By industry, this includes Hanaro Mart, Nonghyup Agricultural Materials Mart, large food material marts, large hospitals, gas stations, and medical centers. The full list can be found on the city’s official website.
However, policy-issued gift certificates without discount support, such as those for agricultural public interest allowances, can still be used at existing affiliated stores with annual sales exceeding 3 billion KRW.
A city official stated, “While the implementation is unavoidable according to the Ministry of the Interior and Safety’s guidelines, we acknowledge that confusion and inconvenience regarding gift certificate usage have occurred among citizens and affiliated store owners. We will strive to minimize inconvenience through promotion via various channels.”
Namwon = Asia Economy Honam Reporting Headquarters, Reporter Jeong Young-gwon baekok@asiae.co.kr
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