Samsung to Refund 20% of Purchases in Onnuri Gift Certificates - Seoul Economic DailySkip to main content<br>Seoul Economic Daily

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Samsung Electronics Chairman Lee Jae-yong. Reporter Sung Hyung-jooSamsung Electronics (005930.KS) said Thursday it will hold the "Together With the People, Appreciation Festival," refunding customers 20% of their total purchase amount in Onnuri gift certificates.<br>The event was arranged to share with the public the profits that have grown on the back of the semiconductor super cycle. When Samsung Electronics' senior management signed a tentative agreement on the 2026 wage accord with the labor union on Nov. 27, the company said it would create a fund worth 5 trillion won over the next five years to be used for social contribution activities.<br>Samsung Electronics is implementing the Appreciation Festival as its first measure for social contribution. The event, running from the 8th of this month to the 5th of next month, will provide 20% of the amount spent on smartphones, TVs and home appliances in Onnuri gift certificates. Public servants devoted to the nation, including soldiers, police, firefighters and correctional officers, will receive an additional 10 percentage points for a 30% refund benefit. "Through discussions with the board of directors and the compliance committee, we will review additional measures so that the management performance the company has achieved can lead to expanded social contribution," Samsung Electronics said.

Samsung Electronics Chairman Lee Jae-yong, who returned home urgently after a business trip, bows his head in apology at the Seoul Gimpo Business Aviation Center (SGBAC) on the 16th. Yonhap News

Samsung Offers Onnuri Gift Certificates Instead of Price Discounts<br>Traditional Markets and Small Merchants Also Anticipate 'Trickle-Down Effect'<br>"We Hope Customer Benefits Lead to Expanded Local Sales"<br>The core of the "Together With the People, Appreciation Festival," which runs for four weeks starting on the 8th, is the method of the benefit. Samsung Electronics decided to provide Onnuri gift certificates instead of directly cutting product prices. The event was designed so that when customers purchase Samsung Electronics products, they receive a certain amount back in Onnuri gift certificates, which can then be used at traditional markets and local small-merchant stores. The idea is to create a structure in which the benefit of purchasing a large company's products does not end with the customer but flows through to the sales of local commercial districts.<br>Samsung Electronics expects that about 400 billion won worth of Onnuri gift certificates will be issued over one month. Onnuri gift certificates are a local currency introduced to revitalize traditional markets. Because their usage is limited to alley commercial districts and everyday-life stores, they are regarded as a representative consumption tool for expanding local spending. Samsung Electronics' use of Onnuri gift certificates in this event is interpreted as a choice aimed at recirculating consumption capacity into the local economy.<br>A Samsung Electronics official said, "We focused on ensuring that the benefits provided to customers can lead to expanded sales for local small merchants and small commercial districts," adding, "We are continuing to consider ways to share with society the achievements we have made through the public's support."<br>The Appreciation Festival is the first step among the concrete implementation measures of the "5 trillion won in social contributions over five years" pledge that Samsung Electronics recently announced. After the labor-management agreement last month, Samsung Electronics presented a policy to ensure that the company's growth and performance create a virtuous cycle not only for employees but also for society as a whole. At the time, the labor-management conflict over performance pay had become prolonged, increasing social fatigue, and the political sphere and the government had also urged a swift settlement. In response, Samsung Electronics expressed its intention to strengthen its social responsibility after the tentative agreement.

Image related to BTS world tour "Arirang in Busan." Photo courtesy of Samsung ElectronicsThis Appreciation Festival was arranged amid such a flow. Samsung Electronics has publicly expressed its will to share the achievements made through the semiconductor super cycle not only as employee compensation but with the public, small merchants and the local economy.<br>Samsung Electronics' event is expected to provide a boost to domestic demand. Korea's economy recorded a real economic growth rate (seasonally adjusted) of 1.7% in the first quarter, higher than expected, but this was largely driven by a 5.1% increase in exports such as semiconductors from the previous quarter. By...