Different Usage Rules for Local Currency in Gyeonggi Stores Cause 'Jeonjeon Geunggeung' Concerns

Gyeonggi Local Currency

[Asia Economy (Suwon) = Reporter Lee Young-gyu] The standards for using 'local currency' in local governments within Gyeonggi Province vary by region, causing damage to small business owners and sparking controversy over fairness.

Distribution markets and tool markets are places where small business owners gather to operate, but they are classified as large-scale stores and cannot accept local currency. Additionally, some local governments accept restaurants with sales exceeding 1 billion KRW as affiliated stores, undermining the original purpose of supporting small business owners through local currency.

In response to this situation, the province is actively considering preparing improvement plans through consultations with 31 local governments within the province to resolve issues caused by differing local currency ordinances by city and county.

◆ Small business owners suffer from unfair regulations

Siheung Distribution Market and Siheung Tool Market, located at 244 Gongdan 1-daero, Siheung-si, Gyeonggi Province. These two markets consist of a total of 58 buildings, including 40 distribution market buildings and 18 tool market buildings, housing small business owners.

However, the use of Gyeonggi local currency is not possible in these places. Both markets are classified as large-scale stores. According to the current 'Distribution Industry Development Act,' stores larger than 3,000㎡ are defined as large-scale stores, and both markets fall under this regulation.

As a result, these markets are classified as large-scale stores (such as large marts, department stores, and shopping complexes) under the 'Local Currency Operation Plan and Basic Local Government Ordinance' and cannot register as local currency affiliated stores.

The representative of Company A, which sells comprehensive bolt products at Siheung Tool Market, expressed regret, saying, "It is a difficult situation due to COVID-19, but we cannot receive the benefits of being a local currency affiliated store. Although the policy is for small business owners, we receive no benefits here."

The representative of Company B, who has operated an electrical-related store at Siheung Distribution Market for 20 years, said, "Most customers who visit daily want to pay with local currency, but we are unable to join as an affiliated store due to the large-scale store regulation, which causes many difficulties. Some customers come expecting to use local currency but leave without purchasing."

◆ Controversy over fairness due to different sales criteria for affiliated store registration

Mr. Park, who runs a galbi restaurant in Suwon, cannot accept local currency due to the annual sales limit of 1 billion KRW. On the other hand, Mr. Choi, who operates a famous outdoor brand store in Ansan, accepts local currency despite having annual sales exceeding 1 billion KRW.

This is because the criteria for registering as a local currency affiliated store differ by local government. Although Gyeonggi Province restricts affiliated store registration to stores with annual sales under 1 billion KRW through the 'Local Currency Affiliated Store Selection Criteria Guidelines' provided to cities and counties, there is no legal binding force, so each local government registers affiliated stores based on its own standards.

Currently, among the 31 cities and counties in the province, seven local governments including Ansan, Gunpo, Siheung, Osan, Anseong, and the counties of Yapyeong and Gapyeong do not include the 'annual sales under 1 billion KRW' criterion in their local currency affiliated store selection standards. Therefore, businesses in these areas can accept local currency even if their sales exceed 1 billion KRW.

On the other hand, 24 cities and counties apply the 'annual sales under 1 billion KRW' criterion for affiliated stores, making local currency transactions impossible for those businesses.

The province is actively considering preparing improvement plans, recognizing that many small business owners are unable to receive benefits due to differing local currency ordinances by city and county.

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