Gwangju Seo-gu Council Passes Resolution to Withdraw Full National Budget Cut of Sangsaeng Card

[Asia Economy Honam Reporting Headquarters Reporter Shin Dong-ho] The resolution urging the withdrawal of the complete national budget cut for the Gwangju Sangsaeng Card, proposed by Im Seong-hwa, a member of the Gwangju Metropolitan City Seo-gu Council, was unanimously approved at the 4th plenary session of the 307th extraordinary meeting.

The resolution criticized the government's decision to reduce the local currency budget from 1.0522 trillion won last year to 605 billion won this year, and to completely cut it next year.

Councilor Im stated, “In a difficult situation caused by the economic downturn due to COVID-19, high inflation, high interest rates, and high exchange rates, cutting off national treasury support for local currency, which has played a role as a catalyst for revitalizing the local economy, can only be interpreted as a complete disregard for the livelihood economy,” adding, “The government should reconsider the macro positive functions of local currency on small business growth, local economic revitalization, and balanced national development.”

He continued, “If national treasury support for local currency disappears immediately, the discount rate for local currency will inevitably decrease, which will reduce consumer incentives to use it, directly impacting the sales of small business owners and self-employed individuals,” and added, “The government’s decision to completely cut the budget, dismissing a policy that clearly shows effects in revitalizing the economies of 204 local governments nationwide and reducing regional disparities as a simple fiscal project of cashback or giveaways, raises the question of whom the current government truly serves.”

Honam Reporting Headquarters Reporter Shin Dong-ho yjm3070@asiae.co.kr

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