SME minister says Korea to review item limits in online traditional market malls
In short
SME Minister Lee So-young told a National Assembly audit on Oct 7 that she would review restricting the products sold in online traditional market malls that accept Onnuri gift certificates, after a ruling-party lawmaker said high-priced imported electronics and travel packages were being sold there. Lee said the voucher system has had no product restrictions for 18 years and that limits would be technically and contractually possible for the online malls. The minister said she would report back on the review.
Read the full story 2 min read
SME Minister Lee So-young said on Oct 7 that she would review restricting the items sold in online traditional market malls where Onnuri gift certificates can be used, telling the National Assembly's Industry, Trade, Energy and SMEs Committee that the current situation does not match the system's purpose. [ 1 , 2 , 4 ]
The question came from People Power Party lawmaker Park Sung-min, who said high-priced imported goods were being sold in the online malls. Yonhap reported Park citing a 7.95 million won imported audio product, a 3.67 million won speaker and a cruise travel package in the 2 million won range. Asia Economy and Electronic Times reported Park citing a Dyson vacuum cleaner, a roughly 8 million won British audio product and a Swiss-made speaker. Asia Economy also reported Park saying the gift certificate has a 1 million won purchase limit but no payment limit, which allows high-priced purchases. [ 1 , 2 , 3 ]
Lee said she had made the same point in an internal meeting the previous week. She said sellers that import or buy electronics could open a store inside a traditional market, gain entry to the online mall and generate discounted Onnuri gift certificate sales, adding that this does not fit the system's purpose. The minister said the voucher system has had no product restrictions in 18 years, described that as an unresolved task, and said that for the online traditional market malls specifically a solution appeared possible because limiting saleable items there is technically and contractually feasible. She said she would report back on the review. [ 1 , 2 ]
Platform commissions were also raised. Asia Economy reported Park saying fees were mainly 13 percent and that they did not help traditional market merchants; Lee replied that she was aware and that the fee gap between small and large platforms was large. [ 2 ]
Electronic Times reported that the audit also covered technology theft by larger firms, with lawmakers from both parties calling for stronger sanctions and relief for affected companies. Lee said she was surprised that the ministry's administrative action on technology theft was limited to corrective recommendations and that it must be improved quickly. The outlet also reported lawmaker Kim Won-i disclosing that a 4-5 pyeong vegetable shop in a Gwangju traditional market had 12.2 billion won of Onnuri gift certificates paid under a cooperative's name last year, the fourth-largest total nationally, with the registered address occupied by another business and the receipt naming a different company. Lee said the case would be investigated with the National Tax Service and other agencies and reported before the comprehensive audit. [ 3 ]
Yonhap's later comprehensive report said Lee also addressed the double charging of health insurance premiums on Noranusan deductions, saying the matter would be discussed with the Ministry of Health and Welfare. [ 4 ]
Why it matters
The Onnuri gift certificate is a government-run voucher meant to support small merchants in traditional markets, so changing what it can buy at online malls touches both platform operators and shoppers who use it. The audit also put other SME Ministry programs, including technology-theft enforcement and platform fees, under scrutiny, and the minister said a review would be reported back to lawmakers. The documents give no indication of a timetable or of how broad any restriction would be.
Key facts
- SME Minister Lee So-young said at the Oct 7 National Assembly audit that she would review limiting the items sold in online traditional market malls that accept Onnuri gift certificates. [ 1 , 2 , 3 , 4 ]
- People Power Party lawmaker Park Sung-min raised the issue, pointing to high-priced imported electronics and travel products sold in those malls. [ 1 , 2 , 3 ]
- Products cited included imported audio priced at 7.95 million won and a 3.67 million won speaker (Yonhap) and an approximately 8 million won British audio product and a Dyson vacuum cleaner (other outlets). [ 1 , 2 , 3 ]
- Park said the Onnuri gift certificate has a 1 million won purchase limit but no payment limit, allowing high-priced purchases in the online malls. [ 2 ]
- Lee said the voucher system has had no product restrictions for 18 years and that limits would be technically and contractually possible for the online malls. [ 1 , 2 ]
- Park also said platform sales commissions of mostly 13 percent were hurting traditional market merchants; Lee said she was aware of the fee gap between small and large platforms. [ 2 ]
- Lee also said she would discuss with the health ministry the issue of health insurance premiums being charged twice on Noranusan deductions, according to Yonhap. [ 4 ]
Confirmed by several sources
- SME Minister Lee So-young said she would review restricting product categories sold in online traditional market malls that accept Onnuri gift certificates, speaking at the Oct 7 National Assembly audit of the SME Ministry. [ 1 , 2 , 3 , 4 ]
- The issue was raised by People Power Party lawmaker Park Sung-min, who cited high-priced imported electronics being sold in those malls. [ 1 , 2 , 3 ]
- Lee said the Onnuri gift certificate system has had no product restrictions for 18 years and that limiting items in the online malls would be technically and contractually possible. [ 1 , 2 ]
Still unclear
- Whether a restriction on items sold in online traditional market malls will actually be introduced, and on what timetable. The minister only said the measure would be reviewed and reported back; no outlet reports a decision, scope or date.
- The exact price of the imported audio product cited in the audit. Yonhap cites 7.95 million won while Asia Economy and Electronic Times cite about 8 million won.
- A reported case of a 4-5 pyeong vegetable shop in a Gwangju traditional market where 12.2 billion won of Onnuri gift certificates were paid last year under a cooperative's name, the fourth-largest in the country. Reported only by Electronic Times, citing lawmaker Kim Won-i; the minister said it would be investigated with relevant agencies, so the claim is not yet independently corroborated.
- The commission rates charged by online traditional market mall platforms. The figure of mainly 13 percent comes from a single outlet, attributed to lawmaker Park Sung-min, and the minister did not confirm a number.
What local media are saying
Timeline, local time
- Yonhap reports the minister's pledge to review product restrictions in online traditional market malls, quoting her remarks at the parliamentary audit. [ 1 ]
- Asia Economy reports the same pledge with additional detail on voucher purchase and payment limits and platform commission rates. [ 2 ]
- Electronic Times reports the audit, including the minister's policy directions and criticism over technology theft and Onnuri gift certificate management. [ 3 ]
- Yonhap issues a comprehensive report that also covers the Noranusan health insurance premium issue. [ 4 ]