The Korean Ministry of SMEs and Startups announced significant changes to the Onnuri Gift Certificate program, aiming to focus support on small and micro businesses. The amendments are part of the enforcement decree and rules under the Special Act for the Promotion of Traditional Markets and Shopping Districts. These changes were mandated by the National Assembly and are scheduled for implementation in June 2024. The policy intends to enhance the effectiveness of the Onnuri Gift Certificate in revitalizing traditional markets and vulnerable commercial areas. By refining eligibility and oversight, the government seeks to ensure that benefits reach those most in need.
The new regulations directly impact Onnuri Gift Certificate merchant registration and renewal. Only businesses with annual sales or certificate redemption amounts not exceeding 3 billion KRW in the previous or current fiscal year can register or renew as merchants. High-revenue sectors such as medical, veterinary, legal, and accounting services, which were previously allowed to register from September 2024, will now be excluded again. Existing merchants registered before the enforcement date will be subject to the new rules at their next renewal. The policy also introduces stricter documentation requirements for registration, including proof of sales and store photographs.
The legislative notice period for these amendments runs from April 13 to May 8, 2024. The revised rules are set to take effect on June 17, 2024, following last year’s passage of the amended Traditional Market Act. Merchants exceeding the sales or redemption threshold will have their registration canceled. New and renewing merchants must submit additional documents, such as VAT standard certificates and, if requested, utility bills or lease contracts to verify business operations. Failure to provide required documents within 30 days of conditional registration will result in cancellation.
Frequently asked questions include: What penalties apply for violations? Merchants accepting Onnuri Gift Certificates outside their registered premises or encouraging non-face-to-face transactions face fines between 3 million and 10 million KRW, while unregistered merchants accepting certificates may be fined up to 20 million KRW. What happens in cases of serious violations? Merchants who exchange certificates without actual goods or services may be fined 1.5 to 3 times the illicit gains. For further inquiries, contact the Ministry of SMEs and Startups, Traditional Market Division at 044-204-7908 or 7900.
The revised Onnuri Gift Certificate policy is a targeted effort to ensure that government support reaches the most vulnerable small businesses in Korea’s traditional markets. By imposing a sales cap and excluding high-revenue service sectors, the policy aims to prevent misuse and focus resources where they are most needed. The introduction of stricter registration and penalty measures is likely to improve program integrity. However, affected businesses should carefully review the new requirements to maintain compliance and avoid penalties.