Will the issuance scale of local currency increase significantly next year... Expected to exceed 6 trillion to 10 trillion won

'Ruling Party Over 21 Trillion Won' Disagreement Between Party and Government

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[Asia Economy Reporter Joo Sang-don] A plan to significantly increase the issuance scale of local love gift certificates (local currency) next year from the originally announced 6 trillion won by the government is being considered. As a sales support measure to broadly help small business owners affected by the COVID-19 crisis, a plan to mobilize separate resources such as additional tax revenue next year due to this year's deadline extension is being discussed.

According to the National Assembly and government authorities on the 28th, a plan to significantly increase the issuance scale of local love gift certificates next year from the government's budget proposal of 6 trillion won is being discussed during the National Assembly budget review process.

The government proposed at the end of August, when announcing next year's budget, a plan to reduce the issuance scale of local love gift certificates, which increased to 21 trillion won this year, to 6 trillion won next year.

The issuance scale of 6 trillion won next year is significantly reduced compared to 21 trillion won this year but is double the 3 trillion won issuance amount planned during the 2020 main budget formulation.

However, President Moon Jae-in said during a conversation with the public on the 21st, "There are criticisms that the compensation amount for losses is insufficient, but we will strive to provide more compensation by utilizing excess tax revenue," and added, "We will do our best to provide more support to sectors excluded from the Loss Compensation Act, such as tourism, travel, and cultural arts." Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki also stated on the 24th, "I think a support project for small business owners who are not eligible for loss compensation should be partially reflected in next year's budget," adding, "This is a matter to be discussed during the National Assembly review process."

The ruling party holds the position that the support scale for small business owners affected by COVID-19 should be significantly increased after the cancellation of the national support fund. Small business organizations also emphasize the need for cash support while demanding an expansion of the budget for consumption coupons and local currency. Accordingly, the government is reportedly considering increasing the issuance scale of local love gift certificates next year to around 10 trillion won.

The legal deadline for passing next year's budget is the 2nd of next month. The increase scale of local love gift certificates may be decided as early as this week.

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