Regional Economy Faces Collapse Risk After Martial Law
Early Issuance of Local Love Gift Certificates with 5-15% Discounts
Amid an already difficult economic recession and a freeze in consumer sentiment due to emergency martial law situations, each district in Seoul is advancing the timing of issuing local currency such as local love gift certificates.
Local love gift certificates and delivery gift certificates issued by local governments can be used at small business franchise stores within the region. This policy has been proven effective in boosting consumption by increasing sales for self-employed business owners and providing discount benefits to consumers.
From the left, Kim Mi-kyung, Eunpyeong District Mayor; Park Hee-young, Yongsan District Mayor; Jeong Mun-heon, Jongno District Mayor. Provided by each district office.
Yongsan-gu will issue 10 billion KRW worth of Yongsan Love Gift Certificates and 5 billion KRW worth of Itaewon Commercial District Recovery Gift Certificates this month. The Yongsan Love Gift Certificates can be purchased at a 5% discount, and the Itaewon Commercial District Recovery Gift Certificates at a 10% discount.
Additionally, from 10 a.m. on the 2nd of this month until November, on the first day of each month for 11 times, the ‘Yongsan Ttaenggyeoyo Gift Certificates’ will be issued at a 15% discounted price. These certificates are mobile-only currency usable on the public delivery app ‘Ttaenggyeoyo’ developed by Shinhan Bank.
Consumers can receive a 15% discount when ordering food through the delivery app, and franchise stores listed on ‘Ttaenggyeoyo’ can significantly reduce costs by paying only a 2% commission fee, which is much lower than private delivery apps.
Park Hee-young, the head of Yongsan-gu Office, said, “This will provide practical help to both small business owners and residents in this era of high inflation,” adding, “We will continue to seek support measures such as promptly executing existing support plans early in the year to stabilize the livelihood economy.”
Gwangjin-gu also issued the largest amount among districts on the 2nd, with 2 billion KRW worth of ‘Gwangjin Ttaenggyeoyo Gift Certificates,’ and will issue 10 billion KRW worth of ‘Gwangjin Love Gift Certificates’ on the 14th of this month.
Eunpyeong-gu decided to issue the entire amount of this year’s ‘Eunpyeong Love Gift Certificates’ early, including the Ttaenggyeoyo Gift Certificates. Kim Mi-kyung, head of Eunpyeong-gu Office, said, “Due to the severe national crisis and economic cold wave, small business owners and self-employed workers have had to endure great sacrifices,” adding, “We will expand low-interest loan support and provide customized consulting for practical assistance, and the issuance of gift certificates will offer even a small help to residents’ household finances.”
Jongno-gu plans to issue Ttaenggyeoyo Gift Certificates on the 1st of every month this year (or the next day if it is a holiday) and will also expand loan support amounts from the Small Business and SME Development Fund. Jeong Moon-heon, head of Jongno-gu Office, stated, “To overcome the livelihood economy crisis, we will expand existing support measures and continue to devise additional support plans.”
Seoul City will issue 75 billion KRW worth of metropolitan Seoul Love Gift Certificates usable throughout the city on the 8th of this month. Ttaenggyeoyo Gift Certificates and local love gift certificates can be purchased through the Seoul PAY Plus (SeoulPAY＋) app.
Meanwhile, according to the Korea Employers Federation, 986,000 businesses closed last year, the highest number since comparable statistics began in 2006. This figure exceeds that of the COVID-19 pandemic crisis period, with the highest closure rates in industries with many small business owners, such as restaurants and retail.
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