Establishing a Virtuous Cycle in the Local Economy
Through Customized Policies by Sector
Gangneung City in Gangwon Province, led by Mayor Kim Hongkyu, is driving the recovery of the local economy by implementing customized policies across various sectors, including support for small businesses, revitalization of traditional markets and local commercial districts, and the operation of local currency and public-private cooperation platforms.
Through the operation of the Gangneung Sarang Gift Certificate (Gangneung Pay), Gangneung City has established a stable virtuous cycle of local consumption. In 2024, Gangneung Pay recorded usage of 107.2 billion won, with cashback payments totaling 9.7 billion won, contributing significantly to boosting local consumption.
For 2025, the city set an issuance target of 116 billion won and secured a cashback fund of 9.9 billion won (as of December), laying the foundation for sustainable operation. The number of affiliated stores is projected to increase from 11,848 at the end of 2024 to 13,330 by the end of November 2025, expanding the user base throughout the region.
Notably, since March of this year, the public-private delivery app "Ttaenggyeoyo," which is linked with Gangneung Pay, has expanded the use of local currency into the online consumption sector. The number of affiliated stores rose from 611 to 1,231, and cumulative subscribers quadrupled to 42,731. Gangneung Pay accounted for over 40% of all payments on the delivery app, demonstrating the effectiveness of the local currency.
Since August, the city has completed the installation of app meter terminals in 1,150 corporate and private taxis, expanding the scope of local currency use to taxi payment services and increasing its utility in the transportation sector.
Gangneung City has also focused on substantially improving the business environment and reducing financial burdens for small business owners through a range of policies, including management fund loans and interest support, store environment improvements, and support for card and tax agency fees.
This year, the city recommended loans totaling 33.7 billion won (21.8 billion won in the first half and 11.9 billion won in the second half) and subsidized 2.5% of loan interest for three years, significantly lowering financial costs. It also implemented the "Store Environment Improvement Support Project," providing up to 5 million won for renovations such as signage and interior work for aging stores, with 53 stores completing their makeovers.
The "Essential Support" program, aimed at easing the burden of fixed costs for small businesses, also gained popularity. The card fee support project benefited 1,112 businesses, while the tax agency fee support project (up to 100,000 won) was so popular that applications closed early in the first half of the year. In response, the city allocated an emergency budget in August to support an additional 150 businesses.
The night market policy to revitalize traditional markets has also stimulated stay-type consumption, serving as a catalyst for commercial district recovery. The Wolhwa Street Night Market operated 44 times this year, attracting about 180,000 visitors and generating total sales of 570 million won. The Jumunjin Night Market operated 18 times, drawing over 11,000 visitors and achieving sales of 87 million won, with a 48% increase in visitors compared to the previous year. Night markets have become a key content driving increased consumption in both traditional markets and nearby local commercial districts.
Additionally, the city expanded the designated area of the Seongnam Market traditional market by 3,835 square meters, newly including 48 stores as eligible for support. The market now encompasses a total of 230 stores, bridging commercial gaps and strengthening both the city's capacity to respond to future government projects and the overall competitiveness of the market.
The institutional foundation for revitalizing local commercial districts was also strengthened. This year, Gangneung City newly designated five areas as alley-type shopping districts, operating a total of six such districts. The current Onnuri gift certificate affiliation rate stands at 53.9%, creating a foundation for citizens' everyday consumption to naturally connect with local commercial districts.
Mayor Kim Hongkyu of Gangneung City stated, "Gangneung Pay, night markets, and alley-type shopping districts are the core pillars driving the local economy," adding, "We will continue to strengthen the virtuous cycle of consumption that enables traditional markets and local commercial districts to grow together."
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