An update on local currency that was Hyeja

(1)Local currency all over the country
(2)Input 20231101 PM 952 Revised 20231101 PM 1001 Articles
(3)Reporter Kim Arnai

(1)KBS Busan Anchorke
(2)The government said that starting next year, it would eliminate all subsidies for local currencies
(3)Now the local government has to do it on its own
(4)It’s the local currency operations across the country that haven’t been established yet
(5)There are criticisms that it’s a decision that puts cold water on it
(6)Reporter Kim Arnai’s report
(7)Report
(8)In a parliamentary audit of the National Assembly’s Strategy and Finance Committee on the 20th of last month, Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance Choo Kyung-ho nailed that local currency subsidies were not needed

(1)Only subsidies were paid during COVID-19, but now local governments are
(2)You have to raise your own budget
(3)Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance Choo Kyung-ho said, “Local governments should decide on their own whether local currency is helpful in the region. It is not right to do so in all directions, just as the state provides subsidies through cash-spraying methods.”
(4)In fact, the government’s budget for local currency of local governments across the country has already almost halved from 660 billion in 2020 to 350 billion this year
(5)However, most local currencies rely on state funds, so they are still struggling to operate
(6)Daejeon’s local currency, Onda Daejeon, lowered the reserve refund rate from 15 to 3, while Daegu’s Daegu LoPay only exceeded the target of issuance as of July this year
(7)Under these circumstances, all the government subsidies will disappear from next year
(8)In Busan, where more than 20 of the total budget is state-funded, the discount rate for small business owners will be reduced from 7 to 5 starting next year
(9)According to a survey by the Busan Institute, the economic effect of local currency in 2021 was 256 times higher in consumption creation compared to general budget input
(10)Also, 78 percent of Dongbaekjeon users answered that the Dongbaekjeon helps revitalize the Busan economy
(11)Song Ji-hyun, Director of the Regional Circulation Economy Center, If local currency is circulated in a virtuous way, there are areas where local small and medium-sized supermarkets and merchants can benefit more
(12)There are 196 kinds of local currency nationwide, including Dongbaekjeon in Busan
(13)More active support from the government and local governments is needed to revitalize the alley business district, which is still suffering from the aftereffects of the COVID-19 outbreak