There are concerns that the administrative expense burden is significant for the 'Win-Win Payback' program, which aims to revitalize vulnerable commercial areas.
The Win-Win Payback program refunds up to 300,000 won in digital Onnuri gift certificates when card spending increases. There are also claims that the complex design of the program reduces its effectiveness.
According to the Ministry of Small and Medium Enterprises and Startups on the 25th, the budget for this Win-Win Payback program is 1.37 trillion won, of which about 24 billion won has been spent on system development. The budget has been allocated to various areas, including the system for comparing the expenditure data of eligible small business owners and this year's increases, as well as maintaining a related call center.
However, it is uncertain whether the system developed at a significant expense can be reused once the Win-Win Payback program ends. Due to budget constraints and other factors, similar projects cannot be frequently implemented, and it is unclear if they can be linked to other policy initiatives.
A Ministry of Small and Medium Enterprises and Startups official noted, 'We will look for ways to recycle the system in the future.'
Professor Yang Jun-seok from Catholic University said, 'If we spend expenses only on immediate tasks without utilizing existing systems or having a long-term plan, it is a waste of government finances. There have been traditional market consumption promotion projects in the past, but if we have to build a new system each time, one must question whether it is a good project.'
The government is maintaining its stance to stimulate the economy by increasing fiscal expenditure to encourage consumption. The Win-Win Payback program, hosted by the Ministry of Small and Medium Enterprises and Startups, aims to induce consumption by refunding 20% of the increase in card usage from September to November compared to last year's monthly average in the form of digital Onnuri gift certificates.
If the average monthly card spending last year was 1 million won and this September it was 1.3 million won, then 60,000 won, which is 20% of the increased 300,000 won, will be refunded as digital Onnuri gift certificates.
While financial deterioration is an issue, the significant budget allocated to ancillary expenses is also a burden. The 'Win-Win Consumption Lottery' event being conducted as part of the payback program will use a total of 1 billion won in digital Onnuri gift certificates, awarding 20 million won each to 10 winners through a lottery.
Concerns are growing regarding fiscal expenditures related to the Onnuri gift certificate program. Consumers buy a 10,000 won Onnuri gift certificate for 9,000 won to use it at traditional markets and other places. The discount amount is covered by tax. The budget for the issuance of Onnuri gift certificates has nearly doubled from 177.2 billion won in 2019 to 351.4 billion won in 2024.
This situation involves issuing gift certificates using tax dollars to promote consumption and carrying out another project for the same purpose, resulting in additional fiscal expenditures.
A professor of economics who requested anonymity said, 'It is desirable to limit financial input to visibly crisis-affected targets, such as the Onnuri gift certificate refund event conducted by the Ministry of Small and Medium Enterprises and Startups in special disaster areas.'
There are evaluations that the effect relative to the fiscal input is limited, noting that the complicated design of the program makes it difficult to achieve policy objectives.
Card payments made through online shopping malls, delivery applications, and kiosks installed by self-employed individuals where many small businesses are located do not qualify as increased consumption, as credit card companies find it difficult to identify users.
To receive a refund, expenditures must be made only at designated places such as traditional markets, neighborhood marts, restaurants, academies, and pharmacies where spending is recognized.
The National Assembly Budget Office expressed doubts about the Win-Win Payback program in April, stating, 'Consumers find it difficult to know which spending locations qualify, and there are issues with obtaining sales information from enterprises when executing the program.'
Professor Yang diagnosed that 'the economic stimulus effect might not be significant.' He added, 'While sales in vulnerable commercial areas may slightly increase as a consumption promotion policy, it has not had long-term effects, and it might be better to temporarily ease value-added taxes.'