[Market Focus] Webcash Rises as Lee Jaemyung Launches "Local Currency Usage Challenge" ... "Pledge to Overcome Economic Crisis"

Webcash shares are showing strength. The news that Lee Jaemyung, the presidential candidate of the Democratic Party, has launched a "Local Currency Usage Challenge" appears to be influencing the stock price. Lee intends to maximize the policy's impact by promoting one of his signature policies, which he has pursued since his tenure as mayor of Seongnam, Gyeonggi Province, through a social media (SNS) challenge format.

As of 9:04 a.m. on May 12, Webcash was trading at 17,980 won, up 180 won (1.01%) from the previous trading day.

On May 11, Lee issued a public message, saying, "How about joining the Local Currency Usage Challenge so that small business owners can regain their strength and smiles?" He urged participation. He went on to say, "Let us all work together through the Local Currency Usage Challenge to revive small businesses and neighborhood economies, thaw the frozen domestic market, and overcome the economic crisis together," once again calling for widespread engagement.

Local currency refers to gift certificates issued by local governments and sold to residents at a discount of 5% to 10%. Typically, the central government covers half of the discount rate with national funds, while the remaining half is funded by the local government itself.

On April 28, the Democratic Party unilaterally passed an additional revised budget bill including 1 trillion won for local currency at the National Assembly's Public Administration and Security Committee. However, during the subsequent negotiations with the government and the People Power Party, the total budget was finalized at 400 billion won.

Bizplay, a Webcash Group affiliate, is engaged in businesses such as mobile gift certificates, SaaS gift certificates, and the BPL Meal Voucher service. For government-led gift certificates, there are the Local Love Gift Certificates issued by local governments and the Onnuri Gift Certificates issued by the Ministry of SMEs and Startups, a central government agency. Each type of gift certificate is managed separately as paper gift certificates, card-type gift certificates, or mobile gift certificates, depending on the payment medium used.

According to its business report, Bizplay is the leading distributor of public mobile gift certificates nationwide, operating its mobile gift certificate business based on the payment infrastructure of 1.8 million ZeroPay merchant locations across the country. The Local Love Gift Certificate serves as a sales agent for gift certificates issued and distributed by 26 local governments nationwide, including Gyeongsangnam-do, Gangwon-do, and Jeolla-do, in accordance with the "Act on the Promotion of the Use of Local Love Gift Certificates." Additionally, Bizplay has been selected by the Ministry of SMEs and Startups, a central government agency, as the issuer of Mobile Onnuri Gift Certificates, which can be used at traditional markets nationwide.

Local governments, the central government, and government agencies are carrying out projects that issue and distribute gift certificates or vouchers in the form of mobile gift certificates, utilizing a mobile gift certificate platform, to suit the business objectives of each institution.

BPL Pay is a new corporation established in December 2021 through a physical spin-off from Bizplay. It plans to offer mobile discount gift certificate sales and account-based mobile payment services for individuals and businesses through the BPL ZeroPay mobile app service. BPL Pay is currently preparing to obtain the necessary licenses to operate these businesses.