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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

South Koreans use cash-giving apps to reduce living costs.

Photo Credit: LEE Photo Credit: LEE
Photo Credit: LEE Photo Credit: LEE

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In the latest cash-making fad, crowds of individuals have been meandering seemingly aimlessly around the forecourt of a museum in central Seoul, silently brushing past each other with heads bent toward smartphones and fingers busily tapping displays.

Financial services app Toss by South Korean startup Viva Republica lets users earn up to 10 cents by walking 10,000 steps, subscribing to social media, or tapping the screen when other users are around.

Cash- and points-offering loyalty applications have become popular in an economy with high youth unemployment and rising inflation. Toss has led this trend with its viral marketing.

According to a poll by job portal Incruit, three in four adults earn money through such apps.

“I’ve only made 150 won ($0.11) so far, but I plan to continue so I can buy coffee or pay for something using the app,” said 27-year-old office worker Baek Na-young.

Since January, Viva Republica reported that 4.4 million users had used Toss’ cash-giving in-app feature, and handset app opens have grown 30%.

Han Sun-Jae, 77, a retiree, said the Toss app had earned him 50,000 won ($37.91).

“My daughter works nearby and told me many people were gathering here and that I could make more money here,” he said outside the Seoul Museum of Art, where office employees gathered at lunchtime based on rumor and grapevine chatter.

Experts said the pattern indicates people going the extra mile to assist in overcoming a worsening economy.

In 2022, consumer inflation reached 5.1%, the most since 1998, with food and transit prices rising 5.9% and 9.7%.

Statistics Korea reported that 497,000 15-to-29-year-olds were unemployed in February, the most since 2003.

Some experts warned that exchanging data for pennies could expose sensitive personal data to third parties.

“While the effort to make pocket money is commendable, it could also leave people vulnerable to personal data use,” said Lee Eun-hee, a consumer studies professor at Inha University. “It’s smart to weigh both sides.”


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