Chungnam Issues Local Currency Worth 330 Billion KRW... Regional Economic Impact of 1.4 Trillion KRW

[Asia Economy (Naepo) Reporter Jeong Il-woong] The scale of local currency issued in Chungnam this year is expected to exceed 330 billion KRW.

According to Chungnam Province on the 18th, the issuance scale of local currency in 15 cities and counties in the province is estimated at 60 billion KRW in Cheonan, 55.38 billion KRW in Buyeo, 33 billion KRW in Seosan, 32 billion KRW in Asan, and 20 billion KRW each in Gongju and Seocheon, totaling 332.82 billion KRW.

In particular, the province commissioned the Chungnam Development Institute to analyze the ripple effects of local currency issuance on the regional economy, which is expected to exceed 1.4 trillion KRW.

First, the Chungnam Development Institute projected a production inducement effect of 215.6 billion KRW, a value-added inducement effect of 103.1 billion KRW, cash liquidity secured of 665.6 billion KRW, and prevention of regional income outflow of 332.8 billion KRW due to local currency.

Additionally, a consumption promotion effect of 66.5 billion KRW is expected by multiplying the sales amount by an additional purchasing power of 20%, along with an increase in household income of 16 billion KRW, and a reduction in card fees for small business owners and self-employed individuals amounting to 4.9 billion KRW. The Chungnam Development Institute also anticipates an employment inducement effect of 2,636 jobs.

Meanwhile, the province initially planned to issue local currency worth 63.3 billion KRW, but considering the economic downturn caused by the spread of the novel coronavirus infection (COVID-19), it revised its goal to increase the issuance scale by about four times.

Currently, 74,334 businesses in Chungnam are registered as local currency affiliated stores, accounting for 77% of the total 96,095 stores. The number of affiliated stores and affiliation rates by city and county are ▲Cheonan 46,472 stores (100%) ▲Taean 2,795 stores (85%) ▲Buyeo 1,939 stores (81%) ▲Nonsan 2,668 stores (77%) ▲Gongju 2,011 stores (70%), etc.

In Chungnam, local currency worth 96.1 billion KRW was sold until last month, of which 58.9 billion KRW was used.

This content was produced with the assistance of AI translation services.