Limited-Edition Gyeonggi Regional Currency Distribution Begins...Usage and New Registrations Both Double

[Suwon Ilbo=Reporter Park Noh-hoon] As Gyeonggi Province moves to distribute limited-edition regional currency (consumer support payments) to boost the Chuseok holiday economy, new registrations for Gyeonggi regional currency and consumer spending following the baseline payment date have each increased by approximately two-fold. The province expects this to help revitalize local economies in alleyway markets and among small business owners struggling due to COVID-19 ahead of Chuseok.

According to data compiled on September 21 by Gyeonggi Province and the Gyeonggi Market District Promotion Agency, Gyeonggi regional currency usage from September 18-20, the baseline date for limited-edition currency distribution, averaged 14.3 billion won per day.
During the ordinary period from June through August, Gyeonggi regional currency usage excluding policy-issued funds such as emergency basic income averaged 6.3 billion won per day, representing a 227% increase.
Policy issuance refers to regional currency distribution to policy beneficiaries such as child allowances, childbirth support funds, and youth basic income, while general issuance refers to users charging and using regional currency with their own money.

New registrations for Gyeonggi regional currency also increased significantly. Over the 12-day period from September 9, when Governor Lee Jae-myung announced plans for consumer support payments (limited-edition regional currency), through September 20, average daily new applications reached 11,741. Considering the average of 5,949 daily applications over the three-month period from June through August, this represents nearly a two-fold (197%) increase.

Looking at trends in Gyeonggi regional currency registration and usage, new registrations increased to 14,526 on September 9 with the consumer support payment announcement and reached a peak of 19,337 on September 18, the baseline payment date. Usage amounts totaled 19.3 billion won on the 18th, 14.8 billion won on the 19th, and 8.8 billion won on the 20th, all exceeding the daily average of 6.3 billion won from June through August.
Based on these increasing trends, Gyeonggi Province believes that the consumer support payments (limited-edition regional currency) can reinvigorate alleyway markets and small businesses struggling due to COVID-19.
According to Gyeonggi Province data, there are a total of 503,980 card-type Gyeonggi regional currency affiliated merchants in the province, of which small business owners with annual sales of 300 million won or less account for 370,245 locations, representing 74% of the total.
Based on the first half of this year, Gyeonggi regional currency transaction status shows that of the total transaction amount of 1.31 trillion won, transactions at small business merchant locations with sales of 300 million won or less accounted for 478.1 billion won, representing 36.7% of the total.

This contrasts with BC card transaction results. In the first half of this year, total BC card transactions in Gyeonggi Province reached 19.12 trillion won, with large retailers exceeding 1 billion won in sales accounting for 12.24 trillion won, representing 64%. Small business owners with sales of 300 million won or less accounted for 3.35 trillion won, or 17.5%.

Jo Jang-seok, director of the Small Business Division at Gyeonggi Province, said, "This data demonstrates that regional currency transforms consumption patterns from large-scale retailers such as department stores to alleyway commercial districts, which are the capillaries of the local economy, thereby inducing a virtuous cycle of small business-centered local economies," and added, "Signs that vitality is returning to traditional markets and other on-site locations are emerging."

Meanwhile, consumer support payments (limited-edition regional currency) are Gyeonggi Province's economic defense policy that provides record-level benefits by combining an existing 10% incentive with an additional 15% consumer support payment for 200,000 won deposits. To receive the consumer support payment (limited-edition regional currency) benefits, users must spend a minimum of 200,000 won by November 17 at the latest based on usage from September 18 onwards. The payments will be distributed on a "first-come, first-served" basis to all Gyeonggi regional currency users holding card-type or mobile Gyeonggi regional currency until the 100 billion won budget is depleted.