The government is revamping the Onnuri gift certificate program to provide greater benefits when used in traditional markets and local economies. The plan involves lowering the purchase discount rate while varying the refund rate based on where the certificates are used to encourage spending. Additionally, the 'Our Child Independence Fund,' aimed at supporting asset formation from birth to age 18, will be launched next year.
On October 1, Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il chaired a meeting of the Emergency Economic Headquarters and the Economic Relations Ministers' Meeting at the Government Seoul Building, where the details of the Onnuri gift certificate reform and the support plan for the Our Child Independence Fund were announced.
Changes to Onnuri Gift Certificate Program to Offer Up to 10% Refunds
The core of the Onnuri gift certificate reform is to shift from a purchase discount-centric benefit structure to a combination of purchase discounts and differentiated refunds based on usage. The current purchase discount rate of 7% will be reduced to 5% starting next year, with additional refunds applied based on where the certificates are used.
In traditional markets, consumers will receive a total benefit of up to 10%, combining a 5% purchase discount with a 5% consumption refund. Local alley economies will offer an 8% benefit, with a 5% purchase discount and a 3% consumption refund, while metropolitan alley economies will provide a 5% benefit through the purchase discount alone. This approach aims to vary support levels based on the region and market where spending occurs.
The government believes that the Onnuri gift certificate effectively encourages spending in traditional markets and local economies. Last year, of the total 3.95 trillion won spent using Onnuri certificates, approximately 65%, or 2.6 trillion won, was used in traditional markets, with 57% of total spending occurring in local areas. A survey indicated that 95.9% of Onnuri users shifted some of their spending from large supermarkets to traditional markets, with two out of five users transferring more than 20% of their spending.
The criteria for designating alley-style shopping districts will also be adjusted based on the financial independence of local governments. After relaxing the criteria from 30 stores to 15 stores within a 2,000 square meter area in March 2022, the number of designated alley-style shopping districts increased from 381 in 2024 to 1,564 in 2025, and reached 2,130 by the end of August this year. The government plans to adjust the designation criteria to consider the potential for expanding Onnuri usage in already active markets.
For local governments in the top 25% of financial independence, the requirement will remain at 30 stores; for the middle 50%, it will be 20 stores; and for the bottom 25%, it will be 15 stores. However, the 15-store requirement will apply to adjacent markets forming a single commercial area within a 1-kilometer radius of traditional markets and in areas experiencing population decline.
Onnuri affiliated stores will be managed primarily for small and micro businesses. Since June, the government has limited the registration and renewal of affiliated stores to those with annual sales of 3 billion won or less, and has restricted registrations for specialized sectors such as medical, legal, accounting, and tax services. Future regulations will also be established to limit the registration and renewal of stores that do not align with the program's intent, such as corporate supermarkets.
Measures to promote consumption linked to local tourism will also be pursued. Consumers using a certain amount of digital Onnuri gift certificates will receive refund benefits along with tickets to local attractions, accommodation vouchers, or discount coupons for local shopping malls. The government will support travel packages that combine traditional markets with nearby tourist areas in collaboration with local governments. Additionally, a payment system will be established allowing foreigners to scan QR codes at Onnuri affiliated stores using payment apps from their home countries.
Launch of 'Our Child Independence Fund' to Support Asset Building
The government is moving forward with the establishment of the Our Child Independence Fund, which aims to support long-term asset formation from birth to age 18. To this end, 146.5 billion won has been allocated in the 2027 government budget for the Future Response Fund's youth account.
The fund will be available to children born after September 2026. Households with incomes at or below 50% of the median will receive a fixed annual support of up to 1.2 million won. For households with incomes between 50% and 100% of the median, if parents contribute 500,000 won annually, the government will provide 1 million won in support. For households with incomes between 100% and 150% of the median, if parents contribute 1 million won, the government will match that amount. Households with incomes above 150% of the median will only be allowed to make voluntary contributions without government support.
The total annual contribution limit, combining government support and parental contributions, will be 2 million won, with contributions allowed for up to 19 years. The government estimates that if 2 million won is saved and invested annually at a 6% return, the total amount at maturity could reach approximately 70 million won. Actual savings will vary based on contributions and investment returns.
Plans are also underway to exempt all interest and dividend income generated in dedicated accounts from taxation. If the fund is terminated before the age of 19, any tax benefits received will be reclaimed, except in cases of unavoidable circumstances such as death, overseas relocation, natural disasters, retirement, business closure, injury, or illness.
The government plans to develop detailed operational guidelines following discussions in the National Assembly regarding the budget and tax exemption legislation, as well as consultations with relevant agencies and experts. The fund is expected to launch in the second half of next year after establishing the necessary computer systems.
* This article has been translated by AI.
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