Jeonju Love Gift Certificate

A local currency issued by Jeonju City to revitalize the local economy and support small business owners

Jeonju Love Gift Certificate

Overview

Jeonju Love Gift Certificate (Jeonju Sarang Sangpumgwon) is a local currency issued by Jeonju City in Jeollabuk-do Special Self-Governing Province for the purpose of revitalizing the local economy and increasing sales for small business owners. It is structured so that citizens purchase gift certificates at a discount below face value and use them at affiliated stores within Jeonju City, and it is designed for payment funds to circulate within the region. It is issued in several forms, including paper, card, and mobile types, and Jeonju City, local financial institutions, and platform operators are responsible for issuance and settlement.

Main Details

Background of Adoption

Local currencies spread as a policy tool to return consumption leaking to large supermarkets and online shopping to local alley commercial districts. Jeonju Love Gift Certificate was also introduced in consideration of Jeonju City’s commercial structure, in which small business owners account for a high proportion, and aims to provide discount benefits to citizens and to ease card fee burdens and provide stable sales to affiliated stores. It also intends to alleviate the concentration of consumption in large retailers by forming affiliated stores centered on alley commercial districts, traditional markets, and small stores.

Issuance Forms and Purchase Methods

Initially, paper-type gift certificates printed on paper were central, but recently the share of card and mobile types (app and QR payment) is increasing rapidly. Paper-type certificates can be purchased at designated financial institution counters or special sales outlets, while card and mobile types are generally charged and paid through a dedicated app or partner bank app. In the mobile type, payment is made by scanning the QR code of an affiliated store, and balance checks and recharge history inquiries are possible in real time.

Discount Rates and Purchase Limits

The key incentive of local currency is the discount applied at purchase. The discount rate for Jeonju Love Gift Certificate has been adjusted according to city policy and budget conditions, and it is generally operated by selling at a discount of a few percent of face value. However, to prevent fiscal burden from unlimited issuance and abuse through cashing out (exchange), per-person monthly purchase limits, annual limits, and holding limits are set. Because limits change frequently according to issuance budget and policy goals, it is necessary to check Jeonju City announcements or the operating app’s guidance before purchasing.

Eligible Stores and Benefits

Affiliated stores are registered mainly around small business owners and traditional market stores in Jeonju City, and use is restricted at large supermarkets and in some business types (gambling establishments, entertainment establishments, etc.). From the affiliated store’s perspective, fee burdens are lower than with ordinary credit cards, increasing effective profits, and from the citizen’s perspective, the perceived price is lowered through discounts. Some local governments also introduce additional incentives, such as accumulating a portion of the payment amount or linking income tax deduction benefits.

Exchange, Refunds, and Validity Period

Local currency generally restricts exchange for cash. This is because exchanging discount-purchased amounts for cash could allow earning the discount amount as profit and undermine the policy purpose. Therefore, refunds are handled only on a limited basis according to the regulations of the place of purchase or the issuing institution, and paper-type certificates may be difficult to use after the validity period expires. Identity verification and payment limit management are applied to prevent loss of balances and fraudulent use.

Latest Trends

In 2024–2025, local currency policy faced a major turning point. As the government’s method of national funding support for local love gift certificates changed and local government budget burdens grew, many local governments reduced issuance scale or lowered discount rates. Jeonju City was no exception, and issuance limits and discount rates are being flexibly adjusted according to policy direction, while the shift toward card and mobile types is clear in order to reduce the management costs and forgery/alteration problems of paper gift certificates. At the same time, event-based operations such as temporary special discounts to boost consumption and support alley commercial districts and limit increases during holiday periods are being carried out in parallel. In addition, attempts are increasing to analyze consumption flows by commercial district using payment data and reflect them in policy, and role-sharing with other policy-type gift certificates such as Onnuri Gift Certificate is also being discussed. From the user’s perspective, early exhaustion may occur when issuance volume is limited, making it important to check purchase availability times and limits frequently.