[Market Focus] Government and Ruling Party Begin Full-Scale Talks on Second Supplementary Budget... Local Currency Stocks Rally

On June 9, stocks related to local currency surged as the government and the ruling party considered providing livelihood support funds in the form of local currency (regional gift certificates) through the passage of the second supplementary budget.

As of 9:51 a.m. that day, Kona I was trading at 81,800 won, up 10,200 won (14.25%) from the previous trading day. Other local currency-related stocks such as Cocone (5.31%), Webcash (4.08%), and Urarcle (2.39%) also saw simultaneous gains.

Kona I is a fintech company that develops and operates prepaid card and payment platforms, and has a strong track record of building mobile and card-type local currency systems for various local governments. Cocone, a data platform company, is also expected to benefit indirectly from the growing fintech demand related to local currency.

The previous day, Democratic Party lawmaker Seo Youngkyo, while announcing her candidacy for the party's floor leader election, emphasized the promotion of disaster relief funds and local currency policies. At a press conference, Seo stated, "We aim to pass the supplementary budget and actively review nationwide disaster relief funds and local currency to serve as a catalyst for economic recovery."

She also added, "Within the Democratic Party, we are actively considering nationwide disaster relief funds or local currency to revitalize the domestic economy," and said, "If this supplementary budget is executed, the economic growth rate is expected to increase by about 1%."

The Lee Jaemyung administration and the Democratic Party are aiming to draft and pass the second supplementary budget by next month at the latest. As the proposal to provide a 250,000 won livelihood support fund to all citizens is being seriously considered, the supplementary budget is also expected to include support for local currency issuance and debt relief policies for small business owners.