A person holds Onnuri gift certificates at a traditional market in Mapo District, western Seoul, on Sept. 12, 2024.YONHAP
The government-issued shopping coupons program for traditional markets and small shops is set for its first major overhaul since its launch, aimed at boosting spending among local shoppers and making the system more accessible to foreign visitors.
The Onnuri gift certificates, issued in both paper and digital forms, were introduced in 2009 to support traditional markets and businesses in economically vulnerable areas. Of the 3.95 trillion won ($2.9 billion) spent through the program last year, 65 percent went to traditional markets and 35 percent to smaller, neighborhood businesses.
The overhaul will expand compatibility with foreign payment apps. Starting next year, the digital Onnuri QR payment system will be linked to Alipay, allowing visitors to pay at participating businesses using the same app they use at home. The Alipay integration will give users of 40 payment apps across countries such as Thailand, Malaysia, Vietnam, Italy and Germany access to the Onnuri QR network.
Businesses that accept Onnuri gift certificates will also appear in English-language searches on Naver Map and Kakao Map. The central government is also working with local authorities to offer attraction tickets or accommodation vouchers to tourists who spend above a certain amount in designated tourism areas.
For domestic shoppers, the renovation includes cutting the upfront discount on digital Onnuri gift certificates and expanding incentives for spending at traditional markets and neighborhood businesses outside the greater Seoul area. Currently, the 7 percent upfront discount lets users pay 1 million won and spend 1.07 million won through the program.
Through the revision, purchases at traditional markets will come with a 5 percent upfront discount and a 5 percent rebate — for a total benefit of 10 percent. Shoppers at “neighborhood” businesses in designated districts outside the capital region will receive a 5 percent discount plus a 3 percent rebate, for a total benefit of 8 percent. In the capital region, neighborhood businesses will qualify only for the 5 percent purchase discount.
A sticker indicating that Onnuri gift certificates are accepted is displayed at a business in a neighborhood shopping district in Suwon, Gyeonggi, in an undated photo.CHOI MO-RAN
The government will also revise the criteria for designating "neighborhood shopping districts" to make it easier for less financially self-sufficient municipalities to qualify.
Currently, an area must have at least 15 stores within 2,000 square meters (21,500 square feet), or 10 in regions with declining populations. Under the new scheme, the minimum will vary according to a municipality’s fiscal self-reliance: 30 stores for the top 25 percent, 20 for the middle 50 percent and 15 for the bottom 25 percent.
Areas located within 1,000 square meters of a traditional market, as well as those in population-decline regions, must have at least 15 stores to be designated as a neighborhood shopping district.
The government will also tighten registration and renewal rules for businesses that do not fit the program’s purpose. Since June, the program has largely been limited to businesses with annual sales of 3 billion won or less, while professional service providers such as hospitals, clinics, law firms, accounting firms and tax services have been restricted from participating.
A traditional market is crowded with shoppers in 2025.YONHAP
Pharmacies, however, will remain eligible because they can draw customers to traditional markets and surrounding shopping districts. The ministry also plans to amend the Special Act on the Development of Traditional Market and Shopping Districts to exclude conglomerate-owned supermarkets, as defined under the Distribution Industry Development Act, from the Onnuri program.
The overhaul is set to take effect next year.
“We will make sure the Onnuri program becomes a reliable catalyst for boosting sales for merchants in traditional markets and local communities,” said SMEs and Startups Minister Lee So-young.
The Korea Merchant Association also praised the changes. “It is a decision that reflects voices from the ground,” Lee Chung-hwan, the association's head, said.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
