Woo Won-sik: "Joseyeon Report Closely Mirrors Logic of Chaebol Distribution Companies"

Woo Won-sik, head of the Democratic Party of Korea's Task Force for the Completion of the Administrative Capital, is attending the 4th regular meeting on National Balanced Development and Completion of the Administrative Capital held at the National Assembly on the 24th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kang Nahum] On the 20th, Woo Won-sik, a member of the Democratic Party of Korea, criticized a report by the Korea Institute of Public Finance (KIPF) stating that the introduction of local currency has had a minimal impact on revitalizing the local economy, saying, "It closely resembles the logic of conglomerate distribution companies that large discount stores and complex shopping malls exist for consumer convenience." This supported the recent criticism of the KIPF report by Gyeonggi Province Governor Lee Jae-myung.

On the same day, Woo stated on his Facebook, "(The KIPF's argument) is that local currency restricts interregional consumption by limiting its use to places like large discount stores, thereby reducing consumer welfare and calling for a reconsideration of government subsidies," adding, "The conclusion, as already seen, is the devastation and collapse of small and medium-sized self-employed businesses."

He said, "Even government-funded research institutions can point out problems in government policies, which is the proper role of experts," but also criticized, "This report contradicts the government's policy to protect small and medium-sized self-employed businesses and cannot be seen as a balanced perspective."

He continued, "Focusing on consumer welfare as the main point fundamentally denies the original purpose of introducing local currency to achieve the dual goals of revitalizing local alley markets," adding, "According to this logic, the means to maximize consumer welfare would be large discount store gift certificates. I regret the loss of balance that only reflects the perspective of large corporate distributors without considering the interests of small business owners."

Woo also criticized the People Power Party, which supports the KIPF report, saying, "Are you suggesting abolishing local currency based on KIPF's uselessness theory, or leaving alley markets and traditional markets as prey to distribution conglomerates?" He questioned, "Was the nomination of the Small Business Association president and the claim to be a party for small business owners just a show?"

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