Purchase discount cut from 7% to 5%, with up to 5% cashback based on where vouchers are spent

Traditional markets get 10% total benefit; provincial alley districts 8%; Greater Seoul 5%

Alley shopping district eligibility criteria to vary by local fiscal self-reliance ratio

Alipay-linked QR payments for foreign tourists; regional tourism perks also planned

Onnuri gift vouchers. [Yonhap]
Onnuri gift vouchers. [Yonhap]

The government is set to overhaul the Onnuri gift voucher system for the first time in 18 years since its introduction. Consumers who use digital Onnuri vouchers at traditional markets will receive a combined benefit of up to 10% through purchase discounts and cashback.

The government announced the "Onnuri Gift Voucher Reform Plan" at a ministerial economic affairs meeting Thursday, jointly with related ministries, according to the Ministry of SMEs and Startups. The overhaul focuses on concentrating consumer benefits on traditional markets and provincial commercial districts while strengthening ties with regional tourism resources and private sector services.

The most significant change involves the discount structure. Currently, digital Onnuri vouchers offer a 7% discount at the point of purchase. Starting next year, the base purchase discount will be lowered to 5%, with additional cashback provided depending on where the vouchers are spent.

Shoppers who use the vouchers at traditional markets will receive a 5% discount at purchase and an additional 5% cashback after payment, for a total benefit of 10%. In provincial alley commercial districts, the combined benefit will be 8% — a 5% purchase discount plus 3% cashback. The reform reduces the benefit for spending in Greater Seoul alley districts from the current 7% to 5%.

The government restructured the discount system to more clearly position Onnuri vouchers as a tool for drawing consumer spending toward traditional markets and provincial commercial districts. Of the 3.95 trillion won ($2.91 billion) spent using Onnuri vouchers last year, 65%, or 2.6 trillion won, was used at traditional markets. Some 57% of total spending, or 2.26 trillion won, occurred outside the Greater Seoul area.

Kim Jeong-ju, the Ministry of SMEs and Startups' director of small business policy, said at a briefing Wednesday that local governments in the Greater Seoul area have relatively strong fiscal capacity and can issue sufficient amounts of local currency, whereas local currency issuance tends to be lower in non-metropolitan regions. "In broad terms, local currencies are meant to stimulate consumption within local governments, while Onnuri — operated by the central government — is oriented toward supporting the relatively weaker links: traditional markets and vulnerable provincial commercial districts," Kim said.

The criteria for designating alley shopping districts eligible for Onnuri voucher use will also be revised, with standards applied on a sliding scale based on local governments' fiscal conditions. Areas in the top 25% by fiscal self-reliance ratio must have at least 30 small-business storefronts within 2,000 square meters; those in the middle 50% must have at least 20; and those in the bottom 25% must have at least 15. Commercial districts within a 1-kilometer radius of a traditional market, and areas designated as population-decline zones, will also be subject to the 15-store threshold.

The government also plans to link Onnuri vouchers with regional tourism. When consumers spend digital Onnuri vouchers above a certain amount in provincial areas, they will be eligible to receive not only cashback but also additional perks such as admission tickets to local attractions, accommodation vouchers and discount coupons for regional online shopping platforms. Local governments will use their own budgets to design the specific benefits and support mechanisms.

The government will also lower barriers for foreign tourists. By linking Alipay with the Onnuri QR payment system, visitors to Korea will be able to make QR payments at Onnuri-affiliated merchants using the payment apps they already use in their home countries. The government said the Alipay linkage will enable access to more than 40 major payment apps from various countries.

Collaboration with private platforms will be expanded as well. Working with Naver, Kakao and others, the government plans to make Onnuri-affiliated merchants searchable on map applications and to mark traditional markets and similar venues on map services designed for foreign visitors. A feature allowing users to convert credit card reward points into digital Onnuri vouchers will also be introduced next year. The government expects more than 5 billion won to be converted annually through the feature.

Ties between the community-benefit online food delivery platform and Onnuri vouchers will also be strengthened. The government will pursue a project to offer discount coupons when users pay with Onnuri vouchers or local currency on the platform. The related budget of 120 billion won has been included in next year's budget proposal.

The government will continue cleaning up its roster of affiliated merchants, including high-revenue pharmacies that drew controversy after becoming known as outlets for expensive obesity drugs. Since June, the government has been limiting Onnuri merchant registration to stores with annual sales of 3 billion won or less.

Onnuri vouchers are currently accepted at approximately 280,000 affiliated merchants. The digital Onnuri app has about 18.68 million registered users, accounting for roughly 38% of the registered population aged 14 and older. The government intends to differentiate the roles of local currencies — which promote spending at neighborhood commercial districts by local residents — and Onnuri vouchers, which will be specialized as a tool for drawing consumers nationwide to traditional markets and provincial commercial districts.

Minister of SMEs and Startups Lee So-young said the government would work to make Onnuri "a reliable catalyst for growing the sales of merchants at traditional markets and in provincial areas."


boo@heraldcorp.com