Samsung Electronics (005930.KS) said Thursday it will hold a "Festival of Gratitude, Together with the People" event, returning 20% of purchase amounts to customers who buy its products in the form of Onnuri gift certificates. The event was arranged to share with the public the surging profits driven by the semiconductor super-cycle. Samsung Electronics estimates the amount customers will receive back through product purchases will reach 400 billion won, and plans to return this through Onnuri gift certificates to help revive local commercial districts and stimulate domestic demand.
From the 8th of this month through the 5th of next month, Samsung Electronics will run an event paying back 20% of the purchase amount on smartphones, TVs, and other home appliances in Onnuri gift certificates.
The event is designed so that the benefits delivered to customers flow back into the local economy. Instead of directly cutting product prices, the company decided to return 20% of the purchase amount in Onnuri gift certificates.
Increased use of Onnuri gift certificates can produce a domestic demand stimulus effect that expands local consumption. Samsung Electronics' decision to use Onnuri gift certificates is interpreted as a choice reflecting its intention to channel spending power back into the local economy. The aim is to create a virtuous cycle in which benefits received from purchasing large-company products do not stop at the individual consumer but lead to increased sales for neighborhood merchants.
Samsung Electronics expects about 400 billion won worth of Onnuri gift certificates to be distributed over the one-month period through the event. "We focused on ensuring that the benefits provided to customers lead to increased sales for local small business owners and small commercial districts," a Samsung Electronics official said. "We are continuously considering ways to share with society the achievements earned through the public's support."
The event is the first step in the concrete execution plans for Samsung Electronics' recently announced pledge of "5 trillion won in social contributions over five years." Following a labor-management agreement last month, Samsung Electronics had presented a policy to ensure that the company's growth and achievements spread throughout society rather than stopping at employee compensation.
"We see this as Samsung Electronics publicly demonstrating its intention not to keep the achievements built through the semiconductor super-cycle limited to employee compensation, but to share them with the public, small business owners, and the local economy," a business community official said.
The event is expected to be a welcome rain for the domestic economy suffering from a consumption drought. Korea's real gross domestic product (GDP) in the first quarter recorded 1.7%, higher than market expectations, but this was largely due to a 5.1% increase in exports such as semiconductors from the previous quarter. By contrast, private consumption rose just 0.5% from the previous quarter, showing a clear temperature gap between exports and domestic demand. Samsung Electronics plans to return 20% of product purchase amounts to consumers in Onnuri gift certificates, contributing to domestic consumption stimulus and the revitalization of local commercial districts.
Samsung Electronics' move to expand benefits for uniformed public servants who devote themselves to the nation is also drawing attention through this event. Marking June as the month of patriots and veterans, Samsung Electronics will additionally provide a 10% product discount along with the Onnuri gift certificate (20%) to "K-Heroes" such as soldiers, police officers, firefighters, and correctional officers.
"The intention is to honor the dedication and hard work of the heroes around us and to send even a small measure of gratitude and support," a Samsung Electronics official said. The number of K-Heroes eligible for the benefits is estimated at more than 700,000, including military personnel, civilian military employees, police officers, firefighters, and correctional officers.
Starting with this event, Samsung Electronics also plans to pursue additional social contribution measures, including: strengthening the competitiveness of the industrial ecosystem through support for partner companies; expanding inclusive finance to support the self-reliance and recovery of vulnerable groups and small self-employed business owners with low financial access; and fostering talent and strengthening industry-academia cooperation to secure future industrial competitiveness in fields such as artificial intelligence (AI).
"Considering the public's expectations and standards, we will continue to reflect on what role companies should play in our society," Samsung Electronics said. "Through technological innovation and future investment, we will contribute to national economic development while fulfilling our responsibility as a company that grows together with society."
