The Ministry of SMEs and Startups said on the 12th it will announce for legislation from on the 13th to on the 8th next month revisions to the enforcement decree and enforcement rules of the Special Act on the Promotion of Traditional Markets and Shopping Districts, which include introducing a sales standard for Onnuri gift certificate merchants and expanding the list of restricted industries for registration.
The revisions reflect delegated matters and follow-up measures in line with the amendment to the Traditional Market Act set to take effect on Jun. 17.
Under the revisions, when merchants in markets, shopping districts, and alley-type shopping districts newly register as Onnuri gift certificate merchants or renew every three years, registration is restricted if their sales in the previous fiscal year or their Onnuri gift certificate redemption amount exceed 3 billion won. Existing merchants will have their registration canceled if it is confirmed they exceeded the standard, and for existing merchants this will apply from their first renewal.
In addition, health care such as hospitals and clinics, dental hospitals, and Korean medicine clinics, as well as veterinary services and legal, accounting, and tax-related services, are again included among industries restricted from merchant registration. However, pharmacies were excluded from the restrictions in consideration of medical access for older adults and the effect of drawing foot traffic to commercial areas.
Sanction standards for irregularities were also made more specific. If a merchant accepts gift certificate payments outside the store or induces non-face-to-face payments, fines ranging from 3 million won to 10 million won will be imposed depending on the number of violations. If an unregistered store accepts gift certificates, fines of up to 20 million won will be imposed.
If gift certificates are redeemed without a goods or service transaction, a penalty surcharge of up to three times the unjust gains will be imposed.
The merchant registration process will also be strengthened. When applying for new registration or renewal, submission of sales verification documents such as a value-added taxes tax base certificate and photos of the interior and exterior of the store will be mandatory. If necessary, submission of utility bills or a lease agreement may also be required.
The Ministry of SMEs and Startups said the revamp aims to improve fairness in the targets supported by Onnuri gift certificates and to strengthen policy effects focused on traditional markets and neighborhood commercial districts.