Democratic Party: "Significant Expansion of Local Gift Certificates in Next Year's Budget... Domestic Demand Measures Must Be Hastened"

Kim Tae-nyeon, floor leader of the Democratic Party of Korea, is attending the floor strategy meeting held at the National Assembly on the 4th and delivering opening remarks. Photo by Yoon Dong-joo

[Asia Economy Reporter Park Cheol-eung] The Democratic Party of Korea announced that it will significantly expand the local love gift certificates in next year’s budget. Recent signs of recovery in the Korean economy are based on the analysis that active fiscal input policies have supported this.

Kim Tae-nyeon, the floor leader of the Democratic Party, said at the floor countermeasure meeting on the 4th, "Local gift certificates are selling out everywhere, revitalizing the local economy," and added, "The Democratic Party will actively consider significantly expanding local love gift certificates in next year’s main budget. The Democratic Party and the government will do their utmost to stimulate domestic consumption and achieve an economic rebound in the third and fourth quarters."

Regarding the recent economic situation, he pointed out, "Following the June industrial trend showing triple increases in production, consumption, and investment, indicators signaling a green light for the Korean economy in July are being announced one after another."

He cited that the export decline rate improved to single digits for the first time since the COVID-19 pandemic, and exports to major countries are recovering.

Floor leader Kim said, "All economic agents, including the government, companies, and workers, must join forces to maintain the momentum of economic rebound," and added, "The government has mitigated the decline in economic growth rate by defending against the COVID-19 shock through expanded fiscal spending. Consumption and investment are stretching out thanks to rapid and bold fiscal input such as emergency disaster relief funds."

He continued, "We cannot be complacent. Due to concerns about the resurgence of COVID-19, the perceived economy of small business owners, traditional markets, and neighborhood markets is shrinking," emphasizing, "Measures to stimulate domestic demand to keep the spark of economic recovery alive must be expedited."

He also requested that the issuance of consumption coupons worth 170 billion won included in the third supplementary budget be expedited and stated that consumption promotion measures should be promptly implemented in line with the designation of the 17th as a temporary holiday.

Cho Jung-sik, chairman of the Democratic Party’s Policy Committee, also said, "Our economy is gradually recovering from the COVID-19 shock," and added, "The highest-ever level of fiscal spending in the first half of the year and the three supplementary budgets are proving effective."

He emphasized, "Since the role of the third supplementary budget is very important, we will raise the current progress rate of about 45%. It is also an essential task to smoothly settle the Korean New Deal."

This means that when drafting next year’s budget, the Korean New Deal projects will be significantly expanded, and policies to accelerate related budget allocations will be actively pursued.

The private New Deal fund will also be promoted promptly. Yoon Kwan-seok, vice chairman of the Democratic Party’s Policy Committee, said, "The New Deal fund is expected to have a positive effect by raising funds from the private sector necessary for the promotion of digital New Deal and green New Deal projects, thereby reducing the national fiscal burden while channeling abundant liquidity in the market into productive sectors rather than unproductive areas such as real estate."

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