Gangdong-gu Local Currency 'Gangdong Bitsal Money' Proven by AI and Big Data to Boost Local Economy

Big Data Analysis Using Artificial Intelligence (AI) Techniques Proves Regional Economic Revitalization Effects... Simultaneous Impact on Household Consumption Support and Small Business Sales Increase, Also External Sales Inflow Effect

[Asia Economy Reporter Park Jong-il] Gangdong-gu (Mayor Lee Jeong-hoon) has proven that the card-type local currency ‘Gangdong Bitsal Money,’ the first issued by an autonomous district, is effective in revitalizing the local economy through big data analysis using artificial intelligence (AI) techniques.

Analyzing charging and payment data from July last year to April this year, the total amount charged was 18.38 billion KRW, and the total payment amount was 15.04 billion KRW, with 82% of the charged amount leading to sales for local small business owners.

Since November 2020, monthly payments exceeding 1 billion KRW have been steadily generated, indicating an increased effect on sales growth. This figure suggests the economic impact within the region of Bitsal Money, which can only be used at small business establishments within Gangdong-gu.

By industry, payment amounts were highest in daily life-related sectors such as food, clothing, housing, education, and hospitals, revealing that issuing local currency has a positive effect on residents’ daily consumption and small business establishments.

Notably, there was also significant usage of Bitsal Money by residents from other areas. Residents of neighboring districts such as Seoul’s Songpa-gu, Gangnam-gu, Gwangjin-gu, and Gyeonggi’s Hanam-si, Namyangju-si, and Seongnam-si showed high charging and payment amounts, indicating that external sales inflow through Bitsal Money enhances the effect of local economic revitalization.

Lee Jeong-hoon, Mayor of Gangdong-gu, stated, “It has been quantitatively proven that issuing Gangdong-type local currency is effective in supporting residents’ economic consumption and small business sales,” adding, “We will further expand the issuance of local currency and utilize the results of this AI analysis to develop customized local currency operation plans for residents and small business owners.”

Meanwhile, Gangdong-gu plans to use AI machine learning algorithms to analyze residents’ local currency usage patterns. The derived results will be used to improve local currency issuance policies and for efficient promotional marketing. Another local currency, ‘Gangdong Sarang Gift Certificate,’ is scheduled to complete analysis by October.

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