"Plan to Introduce Annual Sales Cap of 3 Billion Won"
Hansung Sook, Minister of SMEs and Startups, addressed concerns over suspected illicit distribution of Onnuri gift certificates through certain pharmacies and other outlets, stating, "We plan to introduce solutions such as annual sales limits for affiliated merchants."
On October 14, Assemblyman Kim Won of the Democratic Party of Korea pointed out during the National Assembly’s Industry, Trade, Energy, SMEs and Startups Committee audit, "Since the scope of Onnuri gift certificate affiliates was expanded last year, transaction volumes have increased by 45.7 billion won, of which 34.8 billion won was at hospitals and clinics. The hospital with the highest transaction volume is a large orthopedic hospital located in Sejong City."
He added, "Although this is not illegal, considering that the original intent was to support traditional markets and small businesses, the policy is being criticized as misguided."
Hansung-sook, Minister of the Ministry of SMEs and Startups, is reporting on business operations at the National Assembly's Industry, Trade, Energy, SMEs and Startups Committee's audit of the Ministry of SMEs and Startups on the 14th. Photo by Kim Hyunmin
Assemblyman Kim also noted that a similar "Onnuri boom" was observed at pharmacies, which were initially eligible for affiliate registration. According to Kim, from September last year to the end of August this year, 1,119 pharmacies newly registered as Onnuri gift certificate affiliates, with a combined transaction volume of 34.4 billion won. Notably, a single pharmacy in Jongno-gu, Seoul, processed 19.9 billion won in Onnuri gift certificate payments over the past year.
He stated, "It is not normal business practice for one location to process 20 billion won in Onnuri gift certificates. This raises suspicions of illegal distribution," adding, "We should consider both on-site inspections using law enforcement agencies and revising the list of eligible Onnuri gift certificate merchants."
There were also calls for action against the illegal distribution of payment terminals. Assemblywoman Oh Sehee of the Democratic Party of Korea said, "Illegal terminals that process payments for non-existent businesses are rampant in connection with consumer coupons," and stressed, "Since the intent is to protect traditional markets and small businesses, the Ministry of SMEs and Startups must respond proactively."
Minister Han responded, "If Onnuri gift certificates are being used at large hospitals, that is a problem. The lack of an annual sales cap for affiliates is an issue, so we are planning to introduce a 3 billion won limit." She added, "I believe a joint response across ministries is needed for illegal activities involving Onnuri gift certificates and similar cases, and we will respond actively."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

