Very Similar to Last Year's Proposed Bill
Expressed Willingness to Promote Alongside Opposition's Supplementary Budget
The Democratic Party of Korea reintroduced the so-called 'Local Currency Act,' a key policy of leader Lee Jae-myung, on the 22nd.
Park Jeong-hyun, a Democratic Party lawmaker from the National Assembly's Public Administration and Security Committee, officially submitted the "Partial Amendment to the Local Love Gift Certificate Act" to the National Assembly's Legislative Affairs Office that afternoon. Previously, the National Assembly passed the Local Currency Act in September last year, but President Yoon Seok-yeol exercised his veto power, and after a re-vote in the National Assembly on the 4th, it was ultimately rejected.
On the 7th, gift fruit boxes were displayed at Gwangjang Market in Jongno-gu, Seoul, ahead of the major national holiday, Seollal. Photo by Jinhyung Kang aymsdream@
This amendment contains the same provisions as the Local Love Gift Certificate Act amendment proposed last year, including mandatory national government support for local currencies and mandatory surveys. However, considering the contentious issue of fairness among local governments, a proviso was added stating that "the budget shall be reflected with reductions considering the financial burden capacity of local governments by presidential decree." It also includes strengthened support for areas experiencing population decline.
Lawmaker Park said, "Since Acting Prime Minister Choi Sang-mok has also expressed willingness regarding the supplementary budget, the timing of the proposal seems appropriate," adding, "I hope it will pass the plenary session of the National Assembly in February after prompt discussions between the ruling and opposition parties."
The Democratic Party predicted that the introduction of local currency would have a positive effect on stimulating consumption. Based on an analysis by the Korea Institute of Local Administration, the Democratic Party explained that after the introduction of local currency, the intra-regional consumption rate rose by about 10 percentage points from 40% to 50%, and the average consumer's intra-regional spending also increased by around 300,000 won. Additionally, the sales growth rate was 3.4%, with an increase amount of approximately 875,000 won.
Leader Lee Jae-myung also emphasized at the Supreme Council meeting that "expanding the local currency budget will revive the neighborhood economy and strengthen support for vulnerable groups most affected in crisis situations," adding, "Due to the political shock, the real Gross Domestic Product (GDP) evaporated by 6.3 trillion won. We must resolve political uncertainties and get the stalled economy moving again."
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