Table of Contents
- Dongbaekjeon Cashback Benefits Expanded to Historic Levels
- Differential Application Based on Sales... Focus on Benefits for Small Merchants
- How Much Will Citizens Feel the Increase in Refund Amounts?
- Same Benefits Apply to Delivery, Dongbaek Taxi, and Dongbaek Mall
- Impact on Local Economy and Future Outlook
- Conclusion
- Frequently Asked Questions (FAQ)
Dongbaekjeon Cashback Benefits Expanded to Historic Levels
Busan City plans to raise the Dongbaekjeon cashback rate to a maximum of 13% for two months from September to October to vitalize the local economy and increase sales for small businesses.
This policy focuses particularly on supporting small merchant stores with annual sales of less than 1 billion won, expecting to provide more benefits to citizens and opportunities for sales recovery for small businesses.
This measure is scheduled to be included in the supplementary budget for the second half of 2025.
Differential Application Based on Sales... Focus on Benefits for Small Merchants
Busan City continues its 'differential cashback policy based on sales' that has been in place since July 2023 while introducing a new increase. Accordingly, during the months of September and October, the cashback percentage will vary according to the merchant's size.
Stores with annual sales of up to 1 billion won will receive 13% cashback, while those with sales between 1 billion and 3 billion won will receive 11%. However, merchants with annual sales exceeding 3 billion won will not receive cashback.
As a result, about 90% of the total of 170,000 registered merchants will benefit the most from this policy.
How Much Will Citizens Feel the Increase in Refund Amounts?
Due to recent policy adjustments, the monthly usage limit has been reduced from 500,000 won to 300,000 won. However, interestingly, the cashback refunded amounts have actually increased.
Previously, if you spent 500,000 won, you would receive a refund of 35,000 won at a rate of 7%, but now spending 300,000 won leads to a refund of 39,000 won at a rate of 13%.
Ultimately, even though the spending amount has decreased, the benefits have increased. Therefore, citizens will experience a positive change with reduced financial burdens alongside increased cashback benefits.
Same Benefits Apply to Delivery, Dongbaek Taxi, and Dongbaek Mall
The increase in Dongbaekjeon cashback is not limited to offline payments.
Various public service apps operated by Busan City will also provide the same 13% cashback benefit during September and October. This includes the delivery app 'Ddaengyeo', the taxi-hailing app 'Dongbaek Taxi', and the online local product mall 'Dongbaek Mall'.
This change is expected to significantly increase the usability of Dongbaekjeon in various everyday areas such as food delivery, public transportation, and online shopping.
Impact on Local Economy and Future Outlook
Busan City expects that the issuance amount of Dongbaekjeon will reach about 2 trillion won this year through strengthened cashback policies. This will be the highest figure since 2.4 trillion won during the COVID-19 pandemic in 2022.
The issuance amount of Dongbaekjeon from January to July of this year showed a 23.1% increase compared to the same period last year, demonstrating the effect of consumption stimulation. The expanded implementation of this policy is anticipated to have a positive impact on revitalizing local alley businesses, increasing small merchant sales, and stabilizing the lives of citizens.
Conclusion
The cashback rate expansion policy of Dongbaekjeon, which will be implemented from September, aims to provide more benefits to citizens and practical support to small businesses. In particular, merchant stores with sales of less than 1 billion won, as well as Ddaengyeo, Dongbaek Taxi, and Dongbaek Mall, will also benefit from the same incentives, further strengthening support for everyday spending.
The representative local currency of Busan, Dongbaekjeon, is expected to play an important role as a catalyst for revitalizing the local economy, more than just a payment tool. This policy is likely to have a positive impact on local residents.
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Frequently Asked Questions (FAQ)
Q. How has the Dongbaekjeon cashback rate changed?
The Dongbaekjeon cashback rate will be increased to a maximum of 13% for the months of September and October.
Busan City plans to increase the Dongbaekjeon cashback rate to a maximum of 13% from September to October 2023 to stimulate the local economy and boost sales for small businesses, particularly focusing on small merchants with annual sales of 1 billion won or less, providing real benefits for both citizens and these businesses. This policy is scheduled to be implemented as part of the supplementary budget for the second half of 2025.
Q. How does the cashback rate differ based on merchant sales?
Merchants with sales of up to 1 billion won will receive 13%, those with sales between 1 billion and 3 billion won will receive 11%, and those exceeding 3 billion won will not receive cashback.
Busan City will continue the differential cashback policy based on sales that has been in effect since July 2023, applying different cashback rates during September and October based on merchant size. Merchants with annual sales of up to 1 billion won will receive 13%, those with sales between 1 billion and 3 billion won will receive 11%, while those with over 3 billion won in annual sales will not receive cashback, focusing support on small merchants.
Q. How has the monthly cashback usage limit changed, and what is the feeling for citizens?
The monthly usage limit has decreased from 500,000 won to 300,000 won, but the refunded amount has actually increased.
Due to recent policy adjustments, the monthly usage limit for Dongbaekjeon has been reduced from 500,000 won to 300,000 won, but the increase in cashback rate has led to a higher actual refund amount. Previously, if one spent 500,000 won, they would receive a 35,000 won refund at a rate of 7%. Now, spending 300,000 won leads to a refund of 39,000 won at a rate of 13%. Thus, while the spending amount has decreased, the benefits have increased, allowing citizens to experience a positive change with reduced burdens and enhanced refund rewards.
Q. What services are included in the expanded cashback for Dongbaekjeon?
The delivery app ‘Ddaengyeo’, the taxi-hailing app ‘Dongbaek Taxi’, and the online mall ‘Dongbaek Mall’ also receive cashback benefits.
The 13% increased cashback for Dongbaekjeon applies not only to offline payments but also to various public service apps operated by Busan City. This includes the food delivery app 'Ddaengyeo', the taxi-hailing app 'Dongbaek Taxi', and the online mall 'Dongbaek Mall', all of which will receive the maximum cashback benefit of 13% during September and October. As a result, Dongbaekjeon’s usability is expected to increase significantly across everyday areas such as food delivery, public transportation, and online shopping.
Q. What is the impact of the expanded Dongbaekjeon cashback policy on the Busan local economy?
It contributes to revitalizing the Busan local economy through consumption stimulation and increased sales for small businesses.
Busan City estimates that the issuance amount of Dongbaekjeon will reach approximately 2 trillion won this year due to the strengthened cashback policy. The issuance amount from January to July 2023 has increased by 23.1% compared to the previous year, reflecting the effect of promoting consumption. This policy is expected to support the revitalization of local alley businesses and the recovery of small merchants’ sales, positively impacting the stability of citizens' livelihoods. Dongbaekjeon plays an important role as a local currency driving the local economy.