Regional Economy Battered by COVID-19 Sees Recovery Boost From Disaster Basic Income

[Suwon Ilbo=Reporter Park No-hun] As applications and distribution of Gyeonggi Province's disaster basic income began in earnest, survey results have shown that revitalization of the local economy, which faced crisis due to COVID-19, is gradually showing positive effects.

According to the Gyeonggi Province Small Business and Commerce Promotion Agency (hereinafter GBCA) on the 25th, a survey of 488 self-employed business owners in the province conducted from the 22nd through 5 p.m. on the 24th found that inquiries about local currency usage increased by 57% following the announcement of disaster basic income, with month-on-month sales rising by 56%.

Regarding whether Gyeonggi Province's disaster basic income would help boost sales, 73% forecast it would help increase sales, while 78.5% responded that similar policies involving Gyeonggi Province disaster basic income (local currency) distribution would help boost sales.
78.1% of respondents were self-employed business owners with more than 5 years of operating experience, and 80.7% were found to be aware of Gyeonggi Province's disaster basic income.

These survey results align with a survey of average sales conducted by Korea Credit Data on the 23rd targeting 550,000 self-employed business owners across major regions nationwide during the third week of April (April 13-19).
According to the Korea Credit Data survey, card sales by region during that period showed 84% in Seoul, 89% in Busan, and 77% in Jeju compared to the same period the previous year, while Gyeonggi Province showed a notably higher 95%. This means sales recovered to 95% when comparing the previous year's sales to 100, indicating that Gyeonggi Province's disaster basic income appears to have had an impact on boosting sales, the GBCA explained.

Park Jae-yang, head of management and planning at GBCA, stated, "Although there are limitations as a short-term survey, this can be interpreted as a positive signal that Gyeonggi Province's disaster basic income is helping revitalize the local economy," and added, "As applications and distribution of Gyeonggi Province disaster basic income are increasing, the sales growth effect for self-employed business owners in the province is expected to be even greater."

Meanwhile, this survey was conducted as an online questionnaire through the portal site Naver, with 488 respondents from self-employed businesses, traditional markets, shopping districts, and small business owners in Gyeonggi Province participating.