Donghae City Surpasses 10.27 Billion Won in Donghae Pay Cashback, Achieving Record-Breaking Results

Donghae City Sees Surge in Tourists and Sales, Driving Local Economy
Incentives Raised from 10% to 20%, Maximizing Consumption Boost
Number of Affiliated Stores Up 21%, from 4,887 to 5,904
Next Year’s Issuance Target Set at 70 Billion Won, Cashback Maintained at 10?15%

Donghae City in Gangwon Province has injected significant vitality into the local economy, as its regional currency, Donghae Pay, aimed at boosting local consumption and increasing small business sales, has achieved record-breaking results.

A panoramic view of Donghae City Hall. Provided by Donghae City

On January 12, Donghae City announced that it had achieved its best performance since the program’s inception, distributing a total of 10.27 billion won in cashback throughout 2025 by expanding Donghae Pay sales and increasing the cashback rate.

As part of measures to revitalize the local economy, the city raised the Donghae Pay incentive rate from 10% to 20% starting in September, ahead of the Mureung Festival and the Chuseok holiday peak season in August last year.

As a result, during November, which included the Korea Grand Festival period, sales reached 9.7 billion won and 1.8 billion won in cashback was distributed, demonstrating a concentrated effect in stimulating consumption.

In particular, by increasing the incentive rate, Donghae City maximized the usage rate of livelihood recovery consumption coupons, becoming recognized as a leading example nationwide for cashback distribution and receiving a commendation from the Ministry of the Interior and Safety. Since the launch of Donghae Pay in September 2020, the city has set new records in issuance volume, incentive scale, and national funding secured.

Through active promotion, including operating registration promoters targeting non-affiliated merchants, Donghae City increased the number of affiliated stores by 21%, from 4,887 to 5,904.

Additionally, Donghae City became the first in the province to introduce a taxi Donghae Pay cashback system, which has been implemented since May this year. As a result, taxi card fee payments increased by 24% compared to before the system was introduced, and, coupled with increased usage by tourists, this positively impacted sales growth for local small businesses.

The city also worked to improve the system for digitally vulnerable groups. In preparation for the expiration of Donghae Pay’s five-year validity period (issued in September 2020), a blanket extension was implemented, and an additional 5% incentive was provided to 50 Good Price Stores to encourage higher usage rates.

Building on these achievements, Donghae City plans to issue a total of 70 billion won worth of Donghae Pay in 2026, maintaining a 10-15% discount structure through a post-cashback system. The city intends to focus on ensuring the continuity of benefits and stable program operation, taking into account government support conditions and financial sustainability.

In addition, Donghae City has set the alleviation of small business financial burdens and management stability as the top priorities for its 2026 economic policy. The city will continue to expand support policies for small businesses, including loan assistance, social insurance premium support, card fee support, and incentives for joining the Yellow Umbrella Mutual Aid Fund.

Shim Kyueon, Mayor of Donghae, stated, "Donghae Pay is a representative livelihood policy that benefits both citizens and small business owners. We will focus all municipal resources on establishing a virtuous cycle of local consumption and sales, so that citizens’ incomes increase and Donghae becomes a happier place to live."