A step toward Taebaek as a discount shopping destination

A display of miners' gloves at Cheolam Coal Mine History Village in Taebaek, which once supplied coal — the engine of South Korea's economy — to the entire country
A display of miners' gloves at Cheolam Coal Mine History Village in Taebaek, which once supplied coal — the engine of South Korea's economy — to the entire country
Taebaek Mayor Lee Sang-ho applauds newly appointed Deputy Mayor Lee Jun-ho at a welcoming ceremony. Lee Sang-ho, who belongs to a different party than Governor Woo Sang-ho, drew wide applause after pledging cross-party cooperation.
Taebaek Mayor Lee Sang-ho applauds newly appointed Deputy Mayor Lee Jun-ho at a welcoming ceremony. Lee Sang-ho, who belongs to a different party than Governor Woo Sang-ho, drew wide applause after pledging cross-party cooperation.

Taebaek's local currency Tantan Pay recorded 10.14 billion won ($7.55 million) in transactions in September, the city announced Thursday, crossing the 10 billion won mark for the first time in a single month. The currency was launched to preserve the memory of the city's coal-industry past.

The transaction volume has been hailed as a miracle of small-city economic revitalization. Taebaek's current population stands at around 37,000.

To coincide with the Chuseok holiday last month, the city raised the Tantan Pay incentive from 20 percent to 25 percent, capped at 500,000 won per month. Total incentive payouts for September came to 2.29 billion won.

September usage rose 23.3 percent from August and was up 29.7 percent compared with October last year, when last year's Chuseok holiday fell.

The city attributed the surge to the combination of Chuseok-driven consumer demand and the expanded incentive rate.

Cumulative Tantan Pay spending from January through September this year reached approximately 72.1 billion won. More than 80 percent of September transactions occurred in everyday sectors such as restaurants, food retail and general retail, indicating that spending through Tantan Pay has been concentrated among local small businesses and neighborhood commercial districts.

In October, the city will maintain the Tantan Pay incentive at 20 percent with a monthly cap of 500,000 won to sustain the momentum in local consumption. The city also plans to broaden the benefits by adding festival discounts, extra points at participating fair-price establishments, and voluntary discount programs by local merchants.

Soebaui Rock, the landmark that gave the Cheolam district of Taebaek its name
Soebaui Rock, the landmark that gave the Cheolam district of Taebaek its name

Among the upcoming events, the third Taebaek Soebaugol Meat Festival will be held at the Soebaugol Coal Culture Market on Friday and Saturday. Hanwoo beef will be sold at up to 40 percent off regular prices, and customers who pay with Tantan Pay will receive the festival discount on top of the standard 20 percent Tantan Pay incentive.

Also, 20 Tantan Pay-affiliated fair-price establishments in the city will offer an additional 5 percent credit on Tantan Pay purchases through Dec. 31. Voluntary discount participation by local merchants is also ongoing, meaning shoppers at participating stores can stack store discounts with the 20 percent Tantan Pay incentive.

The city intends to build a consumer environment in which the more residents and tourists spend locally, the greater the benefits — layering festival discounts, fair-price establishment bonuses and individual merchant promotions on top of the base Tantan Pay incentive. The goal is to stimulate spending by both residents and visitors and strengthen a virtuous cycle in the local economy by boosting sales for small businesses and neighborhood commercial districts.

"Tantan Pay surpassing 10 billion won in September is the result of residents and small business owners expanding local consumption together," a city official said. "We will continue to build an environment where residents and visitors can spend more conveniently and economically in Taebaek through Tantan Pay, and raise the competitiveness of Taebaek as a discount shopping destination."


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