South Korea overhauls Onnuri Gift Certificate system

The South Korean government has announced a major overhaul of the Onnuri Gift Certificate system, the first significant restructuring in 18 years. The new plan aims to revitalize traditional markets and regional economies by shifting from a flat discount model to a tiered incentive structure.

Under the new system, digital Onnuri Gift Certificates will offer a 5% purchase discount, supplemented by cashbacks based on usage location. Users can receive a total benefit of up to 10% when shopping at traditional markets, 8% in regional alleyway commercial districts, and 5% in the Seoul metropolitan area. The government also plans to link the certificates with local tourism, offering additional benefits like accommodation discounts and regional attraction tickets for high-volume users. To facilitate international tourism, the government will integrate the system with Alipay, allowing foreign visitors to use various global payment apps via QR codes.

However, concerns have been raised regarding the government's push to reduce paper-based certificates. Data shows that while digital payments dominate service sectors, paper certificates still account for nearly 60% of transactions in the agricultural sector and 56% in the fishery sector. Critics argue that a rapid transition to digital-only formats could marginalize elderly merchants and consumers who are less familiar with mobile technology, potentially impacting sales in essential food markets.