“It’s a starter reward to help alley commercial areas…I don’t want to increase employment and sales of travel accommodation business”
Gyeonggi Gyeonggi Governor Lee Jae-myeong on the 5th made a direct hit with the Korea Institute for Taxation and Finance (Cho Se-yeon), who claimed that his core policy, local currency, had no effect.
The Governor Lee said on Facebook that day, “To prevent the devastation and polarization of sales in alleys, we give incentives when using local currency so that some sales flow to the alleys.”
At the’Collaborative Economics Academic Research Conference’ hosted by the Korean Economic Association, Jo Se-yeon announced with the intention that “local currency can only be used locally, so it is not effective in increasing sales of lodging and travel businesses.”
Kang Chang-hee, a professor of economics at Chung-Ang University, also compared the trend of the number of employed by region before and after issuance of local currency, and said, “There is no evidence that local currency caused employment.”
“The purpose of local currency is to prevent polarization of sales, but not to increase employment and increase sales in the travel and lodging industry,” he said. “Most small businesses such as neighborhood restaurants, chicken stores, pubs, butchers, fisheries, vegetable stores, side dish stores, and rice cake shops “Isn’t it effective to gain sales?”
He said, “Rather than paying subsidies in cash, it is helpful to increase the sales of small and medium-sized business people in the alley commercial area by paying them in local currency that can not be used at large retail stores such as department stores and can only be used by local small business owners. “Beginner common sense”.
He added, “It would be better not to waste your research skills to make a cause, and rather simply say,’I don’t like the sales going to a large distribution company to go to a small business in the neighborhood.'”
Earlier, Governor Lee set a day for Cho Se-yeon, who proposed the use of local currency.
In September of last year, when Jo Se-yeon published a research report stating that’local currency is counterproductive’, he said, “If a national research institute defends the interests of a specific group and intervenes in politics, it is neither a scholar nor research to be protected, nor an enemy to be liquidated. “It’s just that.”
In December of the same year, citing the contents of the policy brief of the Regional Administration Research Institute under the Ministry of Public Administration and Security, saying,’Local currency created added value that exceeded the input budget and provided considerable support for small businesses’, saying, “The payment of local currency has the effect of revitalizing the economy and supporting small businesses. Despite the big deal, conservative media and some politicians mobilized a state-run research institute (Jo Se-yeon under the Ministry of Information) to distort the truth.”
/yunhap news
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