Busan is good

Busan to Extend the “Dongbaekjeon Cashback Expansion Policy” Through August to Boost the Local Economy

내용

The Busan Metropolitan City government (Mayor Park Heong-joon) announced that it will extend the expanded cashback policy for Dongbaekjeon, the city’s local currency, through August in a bid to stimulate local consumption.

To boost domestic demand, the city has implemented a policy from January to June this year to increase both the cashback ceiling and the cashback rate.
Specifically, the monthly cashback limit was raised from KRW 300,000 to KRW 500,000, and the cashback rate was increased from 5% to up to 7%.

From January to May of this year, Dongbaekjeon issuance amounted to approximately KRW 681.3 billion, and usage totaled about KRW 676.2 billion.
Compared to the same period last year, these figures represent a 16.5% increase in issuance and a 16.9% increase in usage, reflecting a noticeable revitalization of the local economy driven by increased consumer spending.

This improvement is attributed to the city's commitment to alleviating the burdens faced by small businesses amid high inflation and interest rates, by significantly increasing its financial input without relying on national funding.

In light of these achievements, the city has decided to extend the expanded cashback policy until August by incorporating funds from the first round of the national supplementary budget.
The current monthly cashback ceiling of KRW 500,000 will remain in place, and the cashback rate will continue as follows:

• ●7% for merchants with annual sales of KRW 1 billion or less

• ●5% for merchants with annual sales between KRW 1 billion and KRW 3 billion

• ●No cashback for merchants with annual sales exceeding KRW 3 billion

The city plans to maximize benefits for both citizens and small businesses through this continued support.

Dongbaekjeon policies after September will be finalized once the allocation of the second round of the government’s supplementary budget for local currencies is determined.
Busan also plans to further expand the issuance of Dongbaekjeon by leveraging additional municipal matching funds to enhance support for small businesses.

Mayor Park Heong-joon stated, “We hope that extending the Dongbaekjeon cashback policy, which helps ease the financial burden on households and invigorates local commercial districts, will promote consumption and increase sales for small businesses, ultimately supporting the recovery of the local economy.”