Onnuri gift certificates will be usable only at affiliated micro and small merchants with annual sales of 3 billion won or less. If illegal distribution is detected, authorities will also impose penalty surcharges of up to three times the illicit gains.

The Ministry of SMEs and Startups on Saturday issued an advance legislative notice of amendments to the enforcement decree and enforcement rules of the Special Act for Fostering Traditional Markets and Shopping Districts.

Under the draft, when a shop in a market, shopping district or alley-type shopping district registers or renews as an Onnuri gift certificate affiliate, registration or renewal will be restricted if sales in the previous business year exceed 3 billion won. The same applies if the amount of Onnuri gift certificates exchanged in the current or previous business year exceeds 3 billion won. Existing affiliates will also be removed from the register if they are found to exceed the criteria, and existing affiliates will be subject to the rules from their first renewal after the effective date.

Health-related businesses such as medical clinics, dental clinics and Korean medicine clinics, as well as veterinary services and professional services related to law, accounting and tax, will also be subject to registration restrictions. Pharmacies will remain permitted, considering access to medical services for older people and other factors.

Standards for punishment for illegal distribution will also be strengthened. If an affiliate owner accepts gift certificates outside the store or induces non-face-to-face payments, an administrative fine of 3 million to 10 million won will be imposed depending on the number of violations. If an unregistered merchant accepts gift certificates, an administrative fine of 100,000 to 20 million won will be imposed. For serious violations, such as accepting and exchanging gift certificates without goods or services transactions, a penalty surcharge of 1.5 to 3 times the illicit gains will be imposed.

When registering or renewing, affiliates must submit documents verifying sales, such as a value-added tax tax base certificate, and photos of the inside and outside of the store. If documents are not submitted within 30 days after conditional registration, the registration will be cancelled.

The amendments were prepared to set out matters delegated under the revised Traditional Market Act, which is scheduled to take effect on June 17. The ministry plans to collect opinions through May 8 and then finalise the rules.

Kim Jeong-ju (김정주), director general for small business policy at the ministry, said the amendments had created momentum for Onnuri gift certificates to contribute more to revitalising micro businesses and vulnerable commercial districts. He said the ministry would work to make the certificates a more useful tool for boosting sales at traditional markets and alley shopping districts.