Resolution to Request Reconsideration of the 'Jiyeokhwaepye Law'... Sangmin Lee: "Infringement on Autonomy... Needs Re-discussion"

Government Approves Request for Reconsideration of Local Currency Act on the Morning of the 30th
Support for Local Love Gift Certificates Changed from Discretionary to Mandatory
"No Effect on Consumption Promotion and Accelerates the Rich Get Richer, the Poor Get Poorer"

The government has passed a resolution requesting reconsideration of the 'Local Currency Act (Partial Amendment to the Act on the Promotion of Local Love Gift Certificates)'. Earlier, the Ministry of the Interior and Safety had announced that it would request President Yoon Seok-yeol to exercise the right of reconsideration (veto), stating that the bill undermines the foundation of local autonomy and infringes on the government's budget formulation authority.

At the Cabinet meeting held on the morning of the 30th at the Seoul Government Complex in Sejong-ro, chaired by Prime Minister Han Duck-soo, the reconsideration requests for the 'Kim Geon-hee Special Prosecutor Act', the 'Chae Sang-byeong Special Prosecutor Act', and the 'Local Currency Act' were approved.

Prime Minister Han Duck-soo is attending and speaking at the Cabinet meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 30th. At the meeting, the Cabinet is scheduled to review and decide on the right to request reconsideration (veto) of three bills, including the 'Special Investigation Act on Mrs. Kim Keon-hee' and the 'Special Investigation Act on Marine Corps Corporal Chae,' which the opposition party forcibly passed in the National Assembly plenary session. Photo by Jo Yong-jun jun21@

The amendment to the Local Currency Act aims to change the financial support necessary for the operation of local love gift certificates by the state and local governments from a discretionary nature to an obligatory one. The opposition parties, including the Democratic Party of Korea, unilaterally passed these bills at the National Assembly plenary session on the 19th and sent them to the government.

Minister of the Interior and Safety Lee Sang-min stated immediately after the resolution, "This bill has a high potential to infringe upon the autonomy of local governments guaranteed by the Constitution and the government's budget formulation authority," and added, "While there is no intended consumption stimulation effect, it accelerates the 'rich get richer, poor get poorer' phenomenon among local governments. We ask for further discussion on this bill."

Minister Lee expressed concern that the bill infringes on the budget formulation authority granted to the government by the Constitution, potentially violating the principle of separation of powers. According to the bill, the Minister of the Interior and Safety must mandatorily reflect the budget requested by local governments for the operation of local love gift certificates in the budget proposal. However, Minister Lee pointed out that this amendment preemptively restricts the budget formulation authority granted to the government by the Constitution and forces specific budget allocations.

The mandatory financial support for subsidies necessary for the issuance and operation of local love gift certificates by the state could deepen the 'rich get richer, poor get poorer' phenomenon among local governments, potentially hindering balanced regional development and appropriate income distribution. Minister Lee elaborated, "If the bill is enacted, local governments with high issuance demand and sufficient financial capacity will apply for and receive more local love gift certificate budgets." He also added that the effect is limited. Given that the government is continuously pursuing various measures to revive the livelihood economy, local love gift certificates largely replace existing consumption and have limited effects in generating additional consumption.

Meanwhile, President Yoon may exercise the veto within 15 days from the day after the bills are transmitted, by next month 4th. If President Yoon exercises the veto on these three bills, the total number of bills vetoed since his inauguration will increase to 24.