Namwon City to Issue 110 Billion Won Worth of Namwon Sarang Gift Certificates Next Year

[Namwon=Asia Economy Honam Reporting Headquarters Reporter Jeong Young-gwon] Namwon City, Jeonbuk Province, has decided to issue local currency (Namwon Sarang Gift Certificates) worth 110 billion won next year, maintaining this year's level, and to keep the discount rate at 10%.

This move contrasts with most local governments, which are reducing the scale of local currency issuance and discount rates amid the government's complete cut of next year's national budget support for local currencies.

This reflects the strong intention of Mayor Choi Kyung-sik of Namwon, who prioritizes revitalizing the local economy.

At the issue coordination meeting on the 13th, Mayor Choi said, "Since Namwon Sarang Gift Certificates significantly contribute to preventing the outflow of local funds, increasing small business income, and revitalizing the local economy, we will maintain the issuance amount and discount rate of Namwon Sarang Gift Certificates next year, even if it becomes a financial burden."

Mayor Choi mentioned "financial burden" because, with the government not budgeting for local currency support next year, local governments issuing local currencies must cover the issuance and discount support budgets 100% from their own funds.

In fact, as the government has cut support budgets entirely, most local governments are reviewing plans to reduce the scale of local currency issuance next year. Cities such as Jecheon, Chuncheon, and Cheongju have taken measures like reducing purchase limits due to early exhaustion of local currency budgets in the second half of this year.

Considering the high response from citizens and the expected early exhaustion of the 96 billion won worth of Namwon Sarang Gift Certificates issued this year, the city plans to allocate 1.5 billion won in the first supplementary budget of the 8th local government term for a 10% discount compensation and issuance costs, and to additionally issue 14 billion won worth of Namwon Sarang Gift Certificates.

Furthermore, next year, the city plans to invest 12 billion won of its own budget to issue Namwon Sarang Gift Certificates worth 110 billion won and maintain the 10% discount rate, which is expected to further activate the Namwon Sarang Gift Certificates.

Meanwhile, Namwon Sarang Gift Certificates have been implemented since March 2019, with sales of 12 billion won in 2019, 114 billion won in 2020, 86 billion won in 2021, and 74.3 billion won this year, achieving a total sales amount exceeding 286.3 billion won.

Namwon=Asia Economy Honam Reporting Headquarters Reporter Jeong Young-gwon baekok@asiae.co.kr

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