Gwangmyeong City: "25.7 Billion Won Livelihood Stability Fund Generated 204.4 Billion Won in Economic Impact"

"Rising Local Currency Usage Spurs Virtuous Cycle of Local Consumption"
Effect Analysis Briefing... 85% of Citizens Say "It Contributed to Economic Revitalization"

'Economic impact eight times greater, 501 jobs created.' This is the result of Gwangmyeong City in Gyeonggi Province analyzing the local economic revitalization effects of the 'Livelihood Stability Support Fund,' which was independently distributed to all citizens at the beginning of the year.

Myunghee Hong, Director of the Economic and Cultural Bureau of Gwangmyeong City, is presenting the analysis results of the Living Recovery Support Fund's effectiveness at the city hall meeting room on the 11th. Provided by Gwangmyeong City

On November 11, Gwangmyeong City held a policy briefing at the city hall's medium-sized conference room under the theme of 'Analysis of the Effects of the Livelihood Stability Support Fund,' and announced the economic and social impacts of the fund.

Myunghee Hong, Director of the Economic and Cultural Affairs Bureau of Gwangmyeong City, stated, "The Livelihood Stability Support Fund is a representative Gwangmyeong-style policy that has led to the recovery of daily life for citizens and improved the structure of the local economy. We will continue to implement policies that drive economic recovery and sustainable growth of local businesses, so that citizens can truly feel the benefits."

100,000 Won Livelihood Support Fund, Expansion of Local Currency → Priming the Virtuous Cycle of Local Consumption

This impact analysis was conducted on the Livelihood Stability Support Fund distributed to all citizens to help the local economy recover ahead of the Lunar New Year holiday. From January 23 to March 31, the city provided 100,000 won per person in Gwangmyeong Love Gift Certificates, a form of local currency. A total of 26 billion won was distributed, and as of the April 30 deadline, 25.7 billion won, or 98.9%, had actually been spent.

The analysis found that distributing the support fund as local currency naturally created a structure in which consumption recirculated within the local economy. In a survey conducted by the city in June of over 3,000 citizens and 100 small business owners, 64.6% of citizens responded that their use of Gwangmyeong Love Gift Certificates increased after receiving the support fund.

This also influenced the government's Livelihood Recovery Consumption Coupon program. The application rate for Gwangmyeong City's local currency in the first and second rounds of the consumption coupon program was 54.3% and 55.7%, respectively-the highest among the 31 cities and counties in Gyeonggi Province. This is about 2.4 times higher than the Gyeonggi Province average (first round: 22.2%, second round: 23%).

According to a 'Difference-in-Differences (DID)' analysis by the Seoul National University Industry-Academic Cooperation Foundation, the distribution of the Livelihood Stability Support Fund by the city also boosted transactions and sales in the local food and restaurant sectors. The difference-in-differences analysis is a statistical method that verifies the effect of a policy by analyzing both the changes before and after implementation and the differences compared to a group that did not receive support.

The analysis showed that during the period the support fund was distributed, the average daily number of transactions in the food and restaurant sectors increased by 33,000 compared to the previous quarter, and daily sales rose by 230 million won.

Additionally, 84.6% of citizens were satisfied with the policy, 83.6% said it helped their household finances, and 85% responded that it contributed to revitalizing the local economy. Among small business owners, 78.8% were satisfied with the policy, and 81.6% said it helped revitalize their business districts.

Economic Impact Eight Times Greater, 501 Jobs Created... Improving Access to Local Currency

The Industry-Academic Cooperation Foundation also reported that the Livelihood Recovery Support Fund generated an economic impact of 204.4 billion won. This is more than 7.9 times the 25.7 billion won invested by the city.

In addition, 501 jobs were created. By sector, employment growth was most pronounced in service industries, with 212 jobs in wholesale and retail, and 185 jobs in food and accommodation. The ripple effects also spread evenly across various other sectors, including education, health, and transportation.

Director Hong explained, "The Livelihood Stability Support Fund promoted the circulation of capital within the local economy, leading to increased household income, expanded tax revenue, and job creation, making it an effective policy for real economic recovery."

Next year, the city plans to introduce paper-based local currency for the elderly, people with disabilities, and single-person households with low digital accessibility, in order to improve access to local currency among vulnerable groups.

Park Seungwon, Mayor of Gwangmyeong City, stated, "The future of Gwangmyeong City is a sustainable economic city centered on its citizens. We will continue to pursue sustainable livelihood policies that enable citizens and small business owners to grow together."