If you spend 300,000 won, you will get 30,000 won… Cash back payment again from the 9th

Cashback (reservation money) payments for’Camellia Jeon’, a local currency in Busan, will resume from the 9th.

The city of Busan announced on the 7th that it will provide cashback for camellias, which was suspended due to budget exhaustion, from the 9th. Considering the size of this year’s budget and the user’s monthly average charging amount (camellia jeon), it has decided to provide cash back up to 10% from the limit of 300,000 won per person per month. This means that if you spend 300,000 won per month for camellia, it will save you 30,000 won so that you can use it like cash. The cashback budget was prepared by municipal and government expenses.

In order to prevent the early exhaustion of the cashback budget, Busan City sets a limit on issuance of camellias at 100 billion won per month, and is enforced by the end of February. If the amount of camellia jeon in January exceeds 100 billion won, the cashback benefit will be temporarily suspended, and in February, 10% of the cashback will be provided at the limit of 100 billion won.

Camellia Jeon, launched at the end of 2019, had a condition of 10% cash back for 1 million won per person per month, but the cash back budget was exhausted sooner than expected. From May last year, the city of Busan has lowered the monthly limit to 500,000 won and 6% cash back. Nevertheless, as the amount of use increased and the budget was not satisfactory, starting in July of last year, the monthly limit of use was adjusted to 10% cashback and 5% cashback when using 100,000 to 500,000 won per month. However, in November last year, when the budget was exhausted, cashback payments were temporarily suspended.

This year, the city of Busan secured a cashback budget of 60 billion won, receiving government funding, and started to pay cash back again. An official from Busan City said, “We decided to resume the cashback benefits of Camellia Jeon early for small businesses who are suffering from Corona 19.”

The total amount of camellia jeon last year amounted to 1.24 trillion won. Accordingly, the cashback budget (fertilization + government expenses) was 91.6 billion won. As Camellia Jeon became popular with a high percentage of cashback, a lot of budget was put in.

Local consumption is expected to be promoted as the Camellia Jeon Cashback resumes. In particular, the sales of’Camellia Mall’, an online local product mall, is expected to increase, and the payment fee for small business owners is expected to decrease as 50,000 affiliated stores of Busan Bank’Sumpass’ linked from December 18 last year can pay for camellia.

Although a new business operator has not yet been selected, Busan City has passed a contract with an operating agency (KT) in accordance with the government’s measures (December 29, 2020) to pay cash back early to boost consumption in the alley commercial area, which has been stagnant due to the prolonged Corona 19. It was extended from December 31st to February 28th, 2021.

Busan City plans to re-select a business operator to operate a local currency payment system and additional services in February, and plans to create a camellia jeon with more various functions and benefits in March. Busan Mayor Byeon Seong-wan said, “I hope that the sales of small business owners will come back to life with cashbacks paid for the new year.”

Busan = Reporter Hwang Sun-yoon [email protected]