"100% National Funding Welcomed...
Detailed Implementation Should Be Left to Local Autonomy"
Cho Hojeong, Chairperson of the Seoul Metropolitan Council, stated in a position paper on July 4 that the detailed implementation plans for the 'Livelihood Recovery Consumption Coupon' included in the government's second supplementary budget for 2025?such as the decision on the payment method?should be autonomously determined and implemented by metropolitan governments, which best understand local circumstances.
Chairperson Cho pointed out, "There are concerns that distributing the Livelihood Recovery Consumption Coupon alone requires an additional budget of 55 billion won," and emphasized, "The central government should establish the basic guidelines for the policy and provide 100% of the funding from the national budget. After that, entrusting the implementation to local governments is a more effective way to ensure swift execution and reduce tax expenditures."
He stated, "While I welcome the decision to provide the Livelihood Recovery Consumption Coupon entirely with national funds, to truly achieve the goal of 'rapid livelihood recovery,' local governments should be granted autonomy to determine the specific implementation methods according to local circumstances."
Cho Hojeong, Chairperson of the Seoul Metropolitan Council. Provided by Seoul Metropolitan Council.
He added that, since each metropolitan government?including Seoul?has sufficient information and experience regarding local consumption structures, resident demand, and the status of small business owners, the payment methods (such as cash, card, or mobile), usage periods, and restrictions on places of use should be autonomously decided and implemented by local governments.
In addition, Chairperson Cho criticized the allocation of 9.1 billion won out of the 55 billion won in operating expenses solely for building a new system, calling it a waste of budget to discard and rebuild the management system that was already established during the COVID-19 period. He argued that, since each local government already has its own proven system and administrative experience, it is necessary to design a system that is field-oriented, allows for autonomy and swift execution, and reduces unnecessary budget waste.
Regarding the method of distributing the consumption coupons, he also asserted, "Cash payments should be actively considered," emphasizing that "payments can be made within a day of application, and there are almost no additional operating costs, which greatly improves administrative efficiency." Citing a Korea Development Institute (KDI) survey showing that 94% of households that received cash payments during the 2020 emergency relief grant used the money for consumption, he stated, "Cash payments also serve the purpose of boosting consumption and increasing sales for small business owners."
Chairperson Cho stressed, "The central and local governments are not in a hierarchical relationship but are partners in the community," adding, "Trust in and delegation of authority to local governments are the first steps toward sustainable policy."
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