Lee Jae-myung: "Tax Research Institute Criticizing Local Currency Is a Deep-rooted Force... Trying to Protect Large Corporations and Card Companies"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] Lee Jae-myung, Governor of Gyeonggi Province, criticized the Korea Institute of Public Finance (KIPF), which criticized local currency, calling it a "deep-rooted corrupt force." He also pointed out that KIPF is protecting large distribution companies and card companies and trying to obstruct the 'Lee Jae-myung-style basic income policy.'

On the morning of the 18th, Lee posted on his Facebook titled "The Korea Institute of Public Finance is getting stranger" and criticized, "If it is defending the interests of a measured group and interfering in politics, it is neither a scholar nor research to be protected, but a deep-rooted corrupt force that must be eradicated."

Lee also claimed that KIPF intentionally issued the report. He said, "It is likely for the purpose of protecting large distribution companies and card companies that suffer sales damage due to the expansion of local currency, and another possibility is political interference; it is difficult to assume other reasons." He added, "Local currency promotes consumption in one's own hometown and supports increasing sales of small and medium-sized merchants, thereby protecting local small merchants from distribution giants such as department stores and large marts," explaining, "The more local currency is activated, the more large marts and distribution giants are negatively affected in sales."

He also emphasized, "Local currency is a 'Lee Jae-myung-style policy' that started in Seongnam and is a key device to enhance the effectiveness of the basic income policy," and "It is probably also the government's and the Democratic Party's intention to greatly expand local currency."

He argued that KIPF's report is not appropriate as a national research institute. Lee said, "As a national research institute, it forcibly denies the results of two studies by another national research institute (the Local Administration Research Institute under the Ministry of the Interior and Safety) and forcibly presents interim research results rather than final ones, going beyond the uselessness theory of local currency to even claim it is a waste of budget," adding, "If it is a national research institute operated with taxpayers' money, it should present objective research results based on valid data for the national interest and public welfare, and it must do so."

Earlier, on the 16th, Lee also criticized the KIPF's report titled "The Impact of the Introduction of Local Currency on the Local Economy," published on the 15th, through his Facebook, saying, "A strict investigation and accountability are absolutely necessary regarding why such a foolish research result, close to a political claim that ignores the economic effects felt by the entire nation, was submitted at this time." Kim Tae-nyeon, floor leader of the Democratic Party of Korea, also supported Lee at the policy coordination meeting held at the National Assembly the day before, saying, "It was witnessed on the ground that it greatly helped economic revitalization, including small businesses," and "We will significantly expand the issuance scale of local love gift certificates to 15 trillion won in next year's budget."