Lee Jae-myung: "Local Currency Economic Effects Are Clear. Gyeonggi Province Must Lead Continued Expansion"

[Suwon Ilbo=Reporter Park No-hun] Governor Lee Jae-myung of Gyeonggi Province and 31 mayors and county governors of Gyeonggi Province agreed to pool their efforts to improve residential environments in housing-vulnerable buildings such as gosiwons and semi-basement residences and to establish a fair market economy through revitalization of the public delivery platform project. Governor Lee re-emphasized the economic stimulus effects of local currency on this day and stated his intention to continue expanding it together with cities and counties in the province.

On the 23rd, Gyeonggi Province held the second half of 2020 Gyeonggi Province-Municipal Policy Cooperation Committee at the Seongnam Creative Economy Innovation Center with Governor Lee Jae-myung of Gyeonggi Province, Ahn Byung-yong, head of the Gyeonggi Province Mayors and County Governors Association (Mayor of Uijeongbu), and heads and deputy heads of 30 cities and counties present.
The Gyeonggi Province-Municipal Policy Cooperation Committee was established at the same time as the launch of the seventh popular election administration in July 2018 with the intention of mutual respect between Gyeonggi Province and cities and counties and implementation of substantive cooperative governance, and is held twice each year, divided into the first and second half.

Governor Lee opened his remarks by saying, "The global economy is in a recession where 0% growth is taken for granted, and we need macroeconomic policies that increase consumption capacity and create demand through state income support to individuals and households to stimulate supply. In line with this, Gyeonggi Province and each city and county implemented pioneering and welfare economic policies by providing disaster basic income and disaster support funds through local currency to promote consumption, and I feel pride in the fact that despite financially difficult circumstances, we have set an example for the nation," he said.
He continued, "Many citizens have come to be certain of the effectiveness of local currency regarding its importance, but it is true that there is considerable backlash from the vested interests because it has the effect of limiting large distribution companies' sales. Nevertheless, since the economic effects of local currency—such as consumption promotion effects and revitalization of small street shops—are clear, I think we (heads of local governments) should take the lead in continuously expanding it."

On this day, Gyeonggi Province, the Gyeonggi Province Mayors and County Governors Association, and the Gyeonggi Province Society of Architects concluded a business agreement to improve residential environments in housing-vulnerable buildings such as gosiwons and semi-basement residences.
As of July this year, there are 3,014 gosiwons in the province, and they are mainly inhabited by basic living security recipients, those just above the poverty line, daily workers, and job seekers. In the case of semi-basement residences, as of September there are 90,912 units. Gosiwons and semi-basements are representative housing-vulnerable buildings that have poor lighting and ventilation and are vulnerable to fires.
According to the agreement, cities and counties and the Gyeonggi Province Society of Architects will recommend the installation of windows for lighting and ventilation or lighting and ventilation equipment for gosiwons during architectural planning and licensing. Additionally, they will recommend refraining from residential use of basements and, when unavoidable, ensuring plans for crime prevention, fire evacuation, flooding, and ventilation. Gyeonggi Province agreed to cooperate in necessary administrative support, such as operating a working-level consultation group for overall coordination of residential environment improvement in housing-vulnerable buildings.

In addition, the province and the Gyeonggi Province Mayors and County Governors Association also concluded a "business agreement for activation of the Gyeonggi Province public delivery platform project." According to the agreement, both sides will collaborate to promote the public delivery platform project while reducing fee burdens on small business owners and improving consumer interests, and will actively support by implementing measures tailored to the characteristics of each local government for early establishment of the public delivery platform project. They will also promote digital education for small business owners and opening of public data.

Governor Lee stated, "In the past, when investing in transportation infrastructure such as the Gyeongbu Expressway, so-called SOC, there were various controversies, but it is clear that it became the foundation of the South Korean economic development. As the digital economy spreads, platforms corresponding to digital SOC are monopolized by a small number of companies, and unreasonable market dominance is occurring. I hope that Gyeonggi Province can create exemplary cases."

The Gyeonggi Province Mayors and County Governors Association drew attention on this day by proposing the establishment of a joint local currency operating organization to the province. The Association stated, "If management problems occur with the current local currency operating agency, there can be security issues with the funds charged by users, and it is estimated that the agency will generate more than 10 billion won in revenue this year from merchant fees, but there is no return to small business owners and the local community. Additionally, due to the absence of an overall coordinating body and limitations in information sharing, there are difficulties in expanding local currency projects."

Accordingly, the Association proposed establishing a Local Currency Committee with joint participation of the province and cities and counties under the Mayors and County Governors Association to perform policy establishment for local currency, establishment and supervision of a local currency center in the form of a public corporation, and deliberation and resolution of major matters such as local currency issuance scale.
In addition, Gyeonggi Province requested active participation from cities and counties in ▲minimizing confusion from lack of understanding of the three rental and lease laws by expanding public-private partnership rental and lease law consultation centers ▲integrated operation of province and municipal courtesy evaluation for improvement of civil service courtesy and spread of courteous administrative services ▲universal provision of health and hygiene products for promotion of women and youth human rights.