Gwangyang Love Gift Certificates, Gwangyang Steelworks Decide to Purchase Over 3.4 Billion Won

POSCO Employees 6,940 Receive 500,000 Won

Year-End Local Economy Revitalization Expected

Gwangyang City in Jeollanam-do announced that POSCO Gwangyang Steelworks plans to purchase Gwangyang Love Gift Certificates in early December ahead of the year-end to revitalize the stagnant local economy.

This decision follows the agreement reached on November 10th in the POSCO labor union’s “2023 Wage Collective Bargaining Agreement,” which decided to provide a total of 3.47 billion KRW in local gift certificates, amounting to 500,000 KRW per each of the 6,940 employees.

[Photo by Gwangyang City]

POSCO labor and management began collective bargaining on May 24th, went through mediation meetings at the Central Labor Relations Commission, reached a tentative agreement on October 31st, and finalized the collective bargaining after a ratification vote on November 10th and a signing ceremony on the 13th.

The 500,000 KRW Gwangyang Love Gift Certificate Card, uniformly given to all POSCO employees, can only be used within the Gwangyang area, and it is expected that local businesses will see a significant boost in activity starting from the 6th, when the gift certificates are distributed.

Since its issuance began in 2008, the Gwangyang Love Gift Certificate has sold a total of 372.394 billion KRW worth by 2023, which appears to have greatly helped prevent the outflow of local funds.

In August 2022, the city switched to mobile gift certificates with a goal of issuing 50 billion KRW, but due to the ongoing COVID-19 pandemic and insufficient promotion of the local love gift certificates, sales were low at 19.8 billion KRW.

However, in 2023, public awareness of the Gwangyang Love Gift Certificate improved, and with the widely known 10% cashback benefit, the issuance target of 60 billion KRW was achieved early, ending sales on September 1st. Next year, the city council has been submitted a budget of 7 billion KRW for discount sales with a goal of issuing 70 billion KRW.

A POSCO official stated, “By purchasing local gift certificates for POSCO workers, we aim to support a virtuous economic cycle where income is earned and spent locally. POSCO will continue to fulfill its role as a corporate citizen.”

Jung In-hwa, Mayor of Gwangyang City, said, “Although this year marked the first labor dispute since POSCO’s founding, it was resolved without escalating to a strike through mutual concessions and cooperation between labor and management. As a result, purchasing local gift certificates will invigorate the local commercial district, for which I am grateful. Going forward, the Gwangyang City Labor-Management-Government Council will continue to play its role to ensure that all industrial sites in Gwangyang can prosper together in harmony.”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr