The city of Suwon in Gyeonggi Province is raising the annual sales threshold for affiliated stores to 1.2 billion KRW to promote the use of local currency and will crack down on illegal distribution of the local currency.
On the 31st, Suwon City announced that starting August 1, it will raise the annual sales limit for 'Suwon Pay' affiliated stores from 1 billion KRW to 1.2 billion KRW.
This is a follow-up measure after the '2024 Gyeonggi Local Currency Deliberation Committee' decided at the end of June to realistically raise the annual sales limit by reflecting the inflation rate over the past five years.
Accordingly, businesses with annual sales exceeding 1 billion KRW but not exceeding 1.2 billion KRW can register as local currency affiliated stores after submitting a value-added tax standard certificate and total business registration details to verify their annual sales. From August 1, applications can be made through the local currency affiliated store website or by visiting each district office or city hall.
Suwon City expects that with the realistic adjustment of the annual sales limit for affiliated stores, sales for small business owners in the region will increase and the use of local currency will be further activated.
Along with this, to establish order in the distribution of local currency, a focused crackdown on illegal distribution at specific businesses will be conducted until August 7.
The targets include affiliated stores registered as general bars or entertainment bars but suspected to be restricted businesses such as bars, pubs, or room salons, as well as stores classified as adult product shops or karaoke bars. If restricted business types are detected, their registration will be canceled.
In particular, local currency affiliated stores suspected of trading pure gold will be intensively inspected. Accessories such as 14k or 18k gold can be traded with local currency, but 24k pure gold, which is easily resold for profit, cannot be traded.
Suwon City operates a report center for illegal distribution, accepts reports, analyzes targets for illegal distribution in advance, and conducts on-site inspections.
A Suwon City official said, "Raising the annual sales cap for local currency affiliated stores not only helps small business owners but also allows consumers to use more affiliated stores," adding, "We ask for active cooperation to establish a sound distribution order for Suwon Pay and help revitalize the local economy."
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