Gyeonggi Province Governor Lee Jae-myung (third from the left) is taking a commemorative photo with participants after the 'National Small Business Association Representatives Meeting' held on the 28th at the Gyeonggi Provincial Government Situation Room in Suwon.
[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, emphasized the expansion of transfer income and the effectiveness of local currency during a meeting with representatives of small business owners, stating that South Korea must now move toward an era where everyone prospers.
On the 28th, at the 'National Small Business Association Representatives Meeting' held in the Gyeonggi Provincial Government Situation Room, Governor Lee said, "The local neighborhood economy must be solidly maintained for the entire society's economy to achieve sustainable growth and development," presenting 'strengthening the weak and restraining the strong' as the key to revitalizing our economy.
He particularly stressed, "The problem with our economy is that although the total volume has increased, it has become concentrated on one side, breaking the balance," and added, "Now, even if the total volume growth is somewhat insufficient, we must create a robust economic structure where all members can live together."
Governor Lee then strongly mentioned the expansion of transfer income and the utility of local currency as alternatives.
He first proposed, "National fiscal expenditure determines how the taxes paid by the people are used. Since our country's national debt ratio is quite low, it is necessary to increase transfer income through fiscal expenditure to improve household debt quality and reduce the total growth rate of household debt."
He also explained, "In addition, if individual support is provided through local currency, it can induce consumption, helping small business owners survive and making household economies sound. The core of local currency is to circulate blood through the economic capillaries, the neighborhoods."
Governor Lee argued that if resources concentrated on one side are circulated back to the market and neighborhoods, many people will increase sales, which will also help long-term economic growth.
The meeting was organized ahead of Chuseok to listen to the difficulties faced by small business owners and self-employed people enduring economic damage due to COVID-19 and to discuss necessary support measures at the Gyeonggi Province level.
Attendees included Lee Dong-joo, Member of the National Assembly from the Democratic Party of Korea; Bang Ki-hong, President of the Korea Federation of Small Business Owners and Self-Employed; Kim Kyung-bae, President of the Korea Central Association for Reviving Local Economies; Lee Choong-hwan, President of the Gyeonggi Province Merchants Association; Jung In-dae, President of the Central Association of Small Business Organizations; Song Jeong-man, President of the National Small Distribution Merchants Association; Lim Won-bae, President of the Korea Supermarket Cooperative Federation; Jang Young-jin, President of the Korea Convenience Store Network; Kim Sung-min, President of the Korea Mart Association; and Lee Hong-woo, Director of the Gyeonggi Market and Commercial Promotion Agency.
The participants said that Gyeonggi Province’s policies, including local currency, have been a great help to small business owners suffering from COVID-19 and requested continued active interest and support from the government and Gyeonggi Province for revitalizing the neighborhood economy.
Kim Kyung-bae, President of the Korea Central Association for Reviving Local Economies, said, "The disaster relief funds provided through the local love gift certificates were really helpful," adding, "I believe it significantly prevented more than 50% of small business owners from closing down."
Member of the National Assembly Lee Dong-joo emphasized, "If a level playing field called a fair economy is not established, the winner-takes-all society after COVID-19 is likely to continue," and stressed, "For this, bills for a fair economy should be created during this period, and policy and administrative support to create a small business-friendly structure is necessary."
Governor Lee introduced key economic policies such as ▲limited edition local currency (consumption support funds) to boost the Chuseok economy ▲lease dispute mediation for rent reduction adjustments for tenant small business owners ▲Gyeonggi Province’s public delivery app 'Baedal Teukgeup' and requested active interest and cooperation.
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