Gyeonggi-do Supports Local Businesses by Increasing Provincial Funds Amid National Subsidy Cuts for Local Currency

The government will increase the issuance scale of Gyeonggi local currency (local love gift certificates) this year.

Gyeonggi Province announced on the 7th that although the national subsidy for Gyeonggi local currency will decrease by 58.8% compared to last year, the provincial and municipal budget (provincial + city/county funds) will be expanded by 28.3%, from 174.5 billion KRW last year to 221.3 billion KRW this year.

Accordingly, the provincial budget will increase from 90.4 billion KRW last year to 95.4 billion KRW, and the city/county budget will increase by 46.8 billion KRW, from 84.1 billion KRW to 125.9 billion KRW.

Looking at the current funding structure for issuing Gyeonggi local currency, when residents charge 100 KRW of local currency, an additional 7 KRW incentive is provided, which is shared by the national government, province, and city/county at 2 KRW, 2 KRW, and 3 KRW respectively.

However, recently the government cut the national subsidy for Gyeonggi local currency from 42.2 billion KRW last year to 17.4 billion KRW this year, a reduction of 24.8 billion KRW (58.8%). Applying the existing incentive sharing ratio, the issuance amount of Gyeonggi local currency inevitably faces a significant decrease.

Gyeonggi Province Governor Kim Dong-yeon is visiting the Bukbyeon Folk 5-Day Market in Gimpo City on the 7th, talking with merchants.

Considering this, Gyeonggi Province expanded the provincial budget for Gyeonggi local currency projects from 2.4941 trillion KRW last year to 3.2 trillion KRW this year, an increase of 705.9 billion KRW (28.3%). However, due to the sharp decrease in national subsidy, the total issuance target of Gyeonggi local currency this year is 4.0263 trillion KRW, which is 528.2 billion KRW (11.6%) less than last year's 4.5545 trillion KRW.

Gyeonggi Province plans to review whether to expand the provincial budget for Gyeonggi local currency projects in the second half of the year, based on small business sales in the first half and the financial status of the province and city/counties.

On the same day, Gyeonggi Governor Kim Dong-yeon visited the Bukbyeon 5-day Market in Gimpo and said, "It is irresponsible and hypocritical for the government and ruling party to reduce budgets that support traditional markets and small businesses while only visiting traditional markets during elections," adding, "Despite the government's subsidy cuts, Gyeonggi Province will protect local currency to become a pillar of support for small businesses and people's livelihoods."

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