Gunpo Mayor Han Dae-hee stated on August 13 that the city should eliminate the meaningless competition for charging incentives at the beginning of the month by transitioning to a post-cashback system, thereby revitalizing the local economy.
During the 95th regular meeting of the Gyeonggi Central Administrative Council held in Gwacheon, Mayor Han officially proposed to Gyeonggi Province and local governments to change the incentive payment method for the Gyeonggi local currency from the current 'pre-discount' system to a 'post-cashback' approach.
He noted that the ongoing competition for incentives, known as the 'charging open run,' at the start of each month has led to increased citizen inconvenience and fairness issues. He emphasized that the focus should be on providing benefits for actual consumption rather than just charging.
Currently, the Gyeonggi local currency is operated by a joint management agency across 28 cities and counties in the province, applying a pre-discount method where incentives are given at the time of charging.
However, as of July 2026, there have been repeated instances where the incentive budget is completely exhausted on the first day of charging in 16 cities and counties. This has resulted in a situation where only those who rush to charge at the beginning of the month receive benefits, while those who charge later miss out on incentives, leading to growing dissatisfaction with the system.
Mayor Han has recognized this issue since the planning phase of the 9th elected term and has consistently called for improvements to the operation of the Gyeonggi local currency, proposing the 'post-cashback' alternative. This method would provide incentives not at the time of charging but when citizens actually use the local currency for purchases.
He believes this change would reduce the competition for incentives at the beginning of the month and encourage actual consumption within the local economy.
Furthermore, Mayor Han stressed that rather than individual cities and counties pursuing this system change independently, Gyeonggi Province should take the lead in reviewing and implementing it collectively with all 28 cities and counties. He pointed out that the transition to a post-cashback system would require restructuring the local currency operation system, designing the new system, and covering associated costs. If each local government were to change the system individually, it could lead to unnecessary costs and confusion among citizens due to differing operational methods.
The public's interest in local currency ultimately revolves around how easily they can receive benefits and whether it genuinely supports local businesses. The current system, which requires citizens to wait for incentives on the first of each month and rush to charge, inevitably leads to unnecessary competition and inconvenience.
In contrast, the post-cashback method is seen as a way to enhance citizen satisfaction by linking benefits to actual consumption rather than the timing of charging.
Mayor Han's proposal aims to shift the focus of local currency policy from 'charging benefits' to 'actual consumption benefits.' This approach seeks to reduce disparities in benefits among citizens due to budget exhaustion at the beginning of the month and create a virtuous cycle where local currency usage translates into increased sales for local small businesses.
Additionally, Mayor Han stated, 'If Gyeonggi Province leads the establishment of a joint operational framework with cities and counties, it will reduce the cost burden associated with system improvements while minimizing confusion among citizens and facilitating the stable establishment of the system.' He expressed hope that this discussion would lay the groundwork for rational improvements across the entire operation of local currency, including the validity period of incentives and limits on holdings and charging.
* This article has been translated by AI.
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