Subsidies to stimulate consumption and revitalize the economy

Yugyeong Jeong

http://www.moef.go.kr

Following the COVID-19 national subsidy, the win-win consumption subsidy project started on October 1 to revitalize the local economy and promote consumption recovery. For the first week, applications are accepted in a five-part system linked to the last digit of the year of birth. After that, there is no limit, and regardless of the application date, you will be eligible for cashback from the card usage history on October 1st.

Participants must be 19 years of age or older, who have used credit and debit cards in their own name during the second quarter of 2021, including foreigners. Non-consumption expenses such as annual fee, tax, and insurance are excluded from the usage history. You can apply through an online channel or customer center by selecting one card company among your cards. When the monthly card usage amount increases by 3% or more from the average monthly usage amount in the second quarter, 10% of the excess amount is refunded as cash back. For example, if the monthly average usage amount in the second quarter is 1 million won and the card usage amount in October is 1.53 million won, 50,000 won, 10% of the 500,000 won, excluding 30,000 won (3%) of the 530,000 won increase, will be paid. The limit of support is 100,000 won per person per month. It is implemented for two months from October, and may be terminated early if resources are exhausted.

Businesses recognized for usage history include medium and large supermarkets, movie theaters, amusement parks, delivery apps, specialized online malls (travel, lodging, etc.), hotels, hospitals, pharmacies, bookstores, furniture, all franchise stores (convenience stores, cafes, bakery, etc.), traditional markets, restaurants, beauty salons, gas stations, and karaoke. Department stores, luxury stores, and the entertainment industry were excluded. In addition, overseas usage records such as overseas direct purchases are not recognized for the purpose of the subsidy project. The subsidy is paid on the 15th of each month and is valid until June 30, 2022.