ANNOUNCEMENT 01 Oct 2021

On 1 October 2021, the Republic of Korea launched a KRW 700 billion Win-Win National Support Fund that targets purchases from small and medium-sized businesses as part of the second 2021 supplementary budget.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

South Korean Ministry of Economy and Finance (기획재정부). "The second supplementary budget for 2021 is confirmed by the National Assembly" ("2021년도 제2회 추가경정예산 국회확정") of 24 July 2021. Available at:
https://www.moef.go.kr/nw/nes/detailNesDtaView.do?menuNo=4010100&searchNttId1=MOSF_000000000055934&searchBbsId1=MOSFBBS_000000000028

Ibid., summary of release in English. Available at:
https://english.moef.go.kr/pc/selectTbPressCenterDtl.do?boardCd=N0001&seq=5178

South Korean Ministry of Oceans and Fisheries ("해양수산부"). "Ministry of Oceans and Fisheries 2nd supplementary budget 24.3 billion won confirmed" ("해양수산부 제2차 추경 243억 원 확정") of 24 July 2021. Available at:
https://www.mof.go.kr/article/view.do?articleKey=42476&searchSelect=title&searchValue=243&boardKey=10&menuKey=971¤tPageNo=1

South Korean Government Win-Win Consumption Subsidy Website. Available here:
http://xn--jj0bw12auzbhdy1be5unkf.kr/%EC%83%81%EC%83%9D%EC%86%8C%EB%B9%84%EC%A7%80%EC%9B%90%EA%B8%88%EA%B0%9C%EC%9A%94.html

Inception date: 01 Oct 2021 | Removal date: 01 Dec 2021

Localisation incentive

On 1 October 2021, the Republic of Korea launched a KRW 700 billion (USD 594 million) Win-Win National Subsidy scheme. In this case, consumers using credit cards are provided with reimbursements for purchases made only from local small and medium-sized businesses. There was no sectoral focus on the scheme, hence it was recorded as horizontal. The scheme will last two months.

The Win-Win National Support Scheme is aimed at rewarding consumer purchases as well as stimulating economic growth for SMEs as a result of COVID-19. In this regard, consumers using credit cards are provided with 10% cashback on purchases, if they show an increase of 3% or more of average spending in the second quarter. The reimbursement cannot exceed KRW 300,000 (more than USD 254,000).

The scheme is part of Korea's 2021 second supplementary budget worth KRW 34.9 trillion (nearly USD 30 million). Please, see related state acts.

Please consult related state acts to view information on other schemes offering incentives from purchasing from SMEs, as well as the 2021 first supplementary budget passed by the Korean National Assembly.

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