The Ministry of SMEs and Startups (MSS)'s "burden-relief credit," operated to support small merchants, was used for mobile game payments and the like but was not reflected in statistics on "improper use." The MSS said it will work with telecom companies to review credit use that deviates from its purpose and proceed with payment cancellations.
According to materials obtained by ChosunBiz from the office of Kang Seung-gyu of the People Power Party, a member of the Trade. Industry Energy. SMEs. and Startups Committee, on the 29th, the MSS counted zero cases of improper receipt or improper use of the burden-relief credit from July through mid-month.
The burden-relief credit is a program that provides up to 500,000 won in digital points to small merchants with annual sales of 300 million won or less, which can be used for public utility bills such as electricity and gas, the four major insurance premiums, telecommunications fees, and vehicle fuel costs. Initially, the eligible uses were limited to public utility bills and the four major insurance premiums, but starting in Aug., they were expanded to include telecommunications fees and vehicle fuel costs.
As of the 21st of this month, 14.651 trillion won had been paid to about 2.93 million people through the credit. Of that, 11.313 trillion won had been used, with a cumulative depletion rate of 77.2%. By category, the shares were ▲ four major insurance premiums 30.86% ▲ vehicle fuel costs 29.25% ▲ public utility bills such as electricity 27.5% ▲ telecommunications fees 12.33%.
After expanding the eligible uses to telecommunications fees, problems arose with the credit being used for some mobile micro-payments. Because category-level blocking is impossible, there were cases where the credit was used for mobile games or paid applications (apps).
One small merchant said, "The credit was used even for mobile game payments." The person added, "There are many instances of people nearby or in online communities exchanging views on whether the credit can be used for micro-payments," and noted, "It seems there is a loophole in the system."
The MSS says it will recover funds after a deliberation committee decision if improper use is confirmed through monitoring, but related cases were omitted from the statistics. There is currently no technology to identify detailed telecommunications fee items or to block in advance credit uses that do not fit the program's purpose. The ministry is checking with telecom companies for any improper payment records.
An MSS official said, "Because telecommunications fees were paid together with add-on services such as game payments, they did not show up in the statistics." The official added, "We are currently checking each item, and we told recipients to use it for necessary expenses, so we cannot sit idle after seeing use that deviates from the purpose; we are consulting with telecom companies," and explained, "We will cancel the payments as quickly as possible and take steps so the funds can be used for the designated purposes."
Criticism that the credit was used contrary to its intent also surfaced at the National Assembly audit on the 23rd. Kim Jeong-ho of the Democratic Party of Korea, a member of the Trade. Industry Energy. SMEs. and Startups Committee, urged stronger oversight, saying there have been cases where the credit was used for non-business items such as games and content through micro-payments.
Because the burden-relief credit has no asset criteria, even individuals with assets worth several billions of won were able to receive benefits. The criteria for issuing the credit do not include the business owner's personal asset items. If a business is not in a sector excluded from small merchant policy financing—such as entertainment businesses, tobacco brokerage, gambling machines, or speculative industries—and annual sales are 300 million won or less, a person actually living in a high-priced apartment can still receive the credit.
Kang Seung-gyu said, "Even though rule-breaking behavior that runs counter to the policy's intent continues, the government failed to even identify it," and added, "A full-scale survey of improper receipt and use is necessary, along with recovery measures."