"Feeling the Impact on Neighborhood Commerce"... Gangnam District 'Flexes' with 60 Billion Won in Local Love Gift Certificates

Seoul Districts Issue Total 282.3 Billion Won, Slight Decrease from Last Year
Seoul City Increases Metropolitan Gift Certificate Issuance by 25 Billion Won
Issuance of Gift Certificates for Public Delivery App "Ttaenggyeoyo" on the Rise

The 25 autonomous districts of Seoul are issuing a total of 282.3 billion won worth of local love gift certificates between February 4 and 6 ahead of the Lunar New Year holiday. This is 6.3 billion won (2.2%) less than during the same period last year (288.6 billion won).

According to Seoul City and its 25 autonomous districts on February 5, Gangnam District has the largest issuance amount by district at 60 billion won, followed by Seongbuk District with 20 billion won, Seongdong District with 15 billion won, and Geumcheon District and Gangseo District with 15 billion won each. Gangnam District recorded the largest year-on-year increase, with its issuance rising by 30 billion won, followed by Gangseo District with an increase of 9 billion won, and Guro District and Geumcheon District with increases of 6 billion won each. In contrast, Seongbuk District’s issuance decreased from 40 billion won to 20 billion won, and Seocho District will issue 8 billion won, down 10 billion won from the previous year.

The local love gift certificates, named in the format "○○ (district name) Love Gift Certificate," are issued with a basic 5% discount rate, but the additional benefits vary by district. Gangseo District and Gwangjin District, among others, use their own budgets to provide an additional 5% payback, resulting in a total discount effect of 10%. Jungnang District applies only the 5% discount, while Gwanak District offers a 7% benefit by combining a 5% discount with a 2% payback. Gangnam District operates a standing payback program that returns 5% of the amount used when paying at affiliated merchants.

On February 11, Seoul City will issue 100 billion won worth of metropolitan Seoul Love Gift Certificates with only a 5% discount rate applied. The issuance volume of metropolitan gift certificates has increased by 25 billion won from 75 billion won last year. When combining the district-level gift certificates and metropolitan gift certificates for this year’s Lunar New Year, the total issuance comes to 382.3 billion won, which is 18.7 billion won (5.1%) more than last Lunar New Year (363.6 billion won).

The metropolitan gift certificates issued by Seoul City and the local love gift certificates issued by the autonomous districts started in 2022 with a 10% discount rate and gained strong popularity. However, as the Yoon Suk Yeol administration drastically cut budget support, the discount rate was reduced to 7% in 2023 and 5% in 2024. During Chuseok in 2023, 401.7 billion won worth of certificates were issued, but by Lunar New Year in 2024, even the issuance amount had shrunk to 100 billion won, about one-quarter of that level. At the time, Seongbuk District Mayor Lee Seungro pointed out, "Demand for the gift certificates is explosive and their effectiveness in revitalizing the local economy has been proven, but national and city government subsidies are continually being reduced."

The issuance amount of gift certificates dedicated to the public delivery app "Ttaenggyeoyo" is also steadily increasing. This is because the share of single-person households is growing, and the certificates have the advantage of delivering immediate benefits to small business owners. Ttaenggyeoyo gift certificates offer a basic 15% upfront discount plus a 5% payback, for a total discount of 20%.

Some districts provide additional benefits on top of this. Gangnam District issued 8 billion won worth of "Gangnam Ttaenggyeoyo Gift Certificates" this month. For orders of 25,000 won or more, users can also receive a 2,000 won discount coupon, resulting in a maximum discount effect of 28%. Gangnam District has the largest scale among Seoul’s districts, with 3,937 Ttaenggyeoyo partner merchants and 156,969 subscribers.

Yeongdeungpo District, where the proportion of young single-person households is high, issued a total of 5.35 billion won worth of Ttaenggyeoyo gift certificates last year, and they were all used up. The district office explained that the number of users doubled in one year, from around 65,000 to around 130,000.

Local love gift certificates can be purchased through the Seoul Pay Plus (Seoul PAY+) app. The monthly purchase limit per person is 500,000 won, and the maximum holding limit is 1.5 million won. The validity period is five years from the date of purchase. If unused after purchase, the full amount can be refunded. Ttaenggyeoyo gift certificates can also be purchased through this app.