Regional Love Gift Certificate Issuance to Expand to 31.2 Trillion Won by 2030... Government’s First Basic Plan Announced

The government will expand the issuance of Local Love Gift Certificates to 31.2 trillion won by 2030. For the first time, a national statutory plan has also been established to ensure stable issuance and efficient management of these certificates.

Local Love Gift Certificate example. The Asia Business Daily DB

On August 30, the Ministry of the Interior and Safety announced that it had formulated the "Local Love Gift Certificate Promotion Plan (2026–2030)." This is the first statutory plan based on the Local Love Gift Certificate Act.

The Local Love Gift Certificate is a region-exclusive currency that can be used only within the jurisdiction of the issuing local government. It provides benefits such as discounts or income tax deductions to consumers, increases sales for small businesses, and prevents capital outflow from the local economy by keeping spending within the region.

The Ministry plans to increase the issuance volume, currently at 24 trillion won, to 31.2 trillion won by 2030. This expansion aims to further stimulate consumption within local areas and strengthen the positive circulation of the regional economy.

The methods of using the certificates will also be expanded, moving from daily, convenience-oriented spending to incorporating unique local characteristics and values. The Ministry will identify local consumption gaps and broaden the user base. The distribution areas for the certificates will be flexibly managed based on residents’ actual lifestyles, rather than strictly adhering to administrative district lines.

The management system will be transformed as well. The existing manual and analog methods will be replaced by a system-oriented approach to improve efficiency. A collaborative structure will be established involving the central government, local governments, and the private sector. The issuance of certificates for policy purposes—such as providing policy support funds—will also be managed in an integrated manner.

The number of local governments and affiliated businesses issuing Local Love Gift Certificates has been steadily increasing. The number of issuing local governments rose from 66 in 2018 to 196 last year. The number of affiliated businesses also climbed from 1.396 million in 2020 to approximately 2.374 million last year.

The issued volume grew from 13.3 trillion won in 2020 to 27.2 trillion won in 2022, then declined to 17.6 trillion won in 2024, before increasing again to 22.4 trillion won last year.

Improper distribution of Local Love Gift Certificates has also been on the decline. Cases of unlawful receipt or illegal exchange dropped from 102 in 2021 to 68 last year, while the number of disciplinary actions likewise decreased from 102 to 32.

Minister of the Interior and Safety Yoon Hojoong said, "We will do our utmost to implement the basic plan without setbacks so that Local Love Gift Certificates become a practical driving force for the recovery of private consumption and the virtuous cycle of regional economies outside the Seoul metropolitan area."

This content was produced with the assistance of AI translation services.