Starting from the local money, “DongBaekJeon” in 2019, Busan released “Dongbaek Taxi” for calling a taxi, and “DongBaekTong,” a delivery application last January.

"DongBaekJeon” gives immediate 10% payback from your payment

DongBaekJeon” is well-received in paying back 10% of your purchase amount to the “point” system, which can be used as money for your next payment. In addition, it offers the same deduction rate, such as cash, which is 30%. The deduction rate increasing to 40% when you use traditional markets is also another advantage. 

How to use it is very simple: install the “DongBaekJeon” application on your smartphone, then join, get a credit card (make an account) and charge money into the card. You can check the payment amount and cashback amount as soon as a payment is made using the credit card. Kim Si-Young (21, Dept. of Media & Communication), a student already using “DongBaekJeon,” said, “Unlike the other local money that can be used in only traditional markets, I like that I can use ‘DongBaekJeon’ at almost any store in Busan. Therefore, I am using the card a lot. The best part is checking the payback with my eyes thoroughly.”

"DongBaek Taxi”without brokerage is free for calling.

Passengers paying with “DongBaekJeon” after using the taxi calling application “DongBaek Taxi” can receive 10% of their payment back. At the same time, unlike the platform of major companies, the drivers of “DongBaek Taxi” do not have to pay a commission on every call. Lee Chae-A (21, Dept. of Media & Communication), a student who uses “DongBaek Taxi” frequently, said, “While the taxi fare is increasing, it is nice to get 10% back from the payment, when using ‘DongBaek Taxi.’”

According to Busan, after its operation in earnest last December, the number of private taxis and corporate taxis joining the “DongBaek Taxi” is 17,000. It is 70% of the all taxis in Busan. From the day of its operation to this February, the accumulated number of taxi calls is 530,000.

"DongBaekTong,”confronting the delivery application of significant companies. 

DongBaekTong” was made to protect the local micro-enterprises against the monopoly or oligopoly of major companies’ delivery apps such as “BaeDaleui MinJok (The Nation of Delivery).” The delivery fee when using the application rises day by day and increases the burden on micro-enterprises. However, unlike the private delivery applications, the “common” delivery platform “DongBaekTong” asserts the 3NON policy. The policy includes no registration fee for franchises, no advertisement fees, and no commissions. 

In addition to the current 10% payback, 5% additional benefits are applied for the launch event. A total of 15% discount benefit is now offered. A user of “DongBaekTong,” Jang Kyung-Yeon (25, Saha-gu), said, “Even though I have to install the application often because of the frequent change in the operation agency, I only use ‘DongBaeKTong’ for delivery because the 15% cashback is useful.”

According to Busan, after its operation from last January 19th, the number of stores applied to be in “DongBaekTong” until March 1st is 4,310. There are 36,450 accumulated signed-up members, and 104,398 people have installed the app.

Toward expansion of public service using local money, experts said that it would be effective in the short-term but need to develop plans that can continuously induce consumption. Yoon Yeo-Jun (Prof. of Economics, PNU) said, “It is clear that adopting local money is helping a lot of owner-operators who are going through difficulties because of COVID-19 as one of the economic stimulus policies, however, because the use of the card is limited, such as not being able to use it in a few cafes, restaurants, and department stores, it can cause long-term distortion. Therefore, policy-making officials should consider sustainable measures.”

Reporter Hong Yun-Woo

Translated by Lee Su-Hyun