Seoul Love Gift Certificate, Gyeonggi Local Currency, Incheon Eum, All-Daejeon…


There is a heated debate over these local currencies with various names.

When the governmental research institute criticized the effect of this expanded policy by the current government, Gyeonggi-do Governor Lee Jae-myeong insisted that it should be reprimanded, saying that it was a "poor institution". And making the day.

As the government's ruling party plans to expand its scale to 15 trillion won next year, it is essential to carefully consider and discuss its effects and side effects.

As this report is 80 pages long, it is not easy to go through all of its contents, so an article like this has been published that summarizes the contents easily.

▶ [Reporting File] "A Foolish Institution" Se-yeon Cho's Research and Contents The

debate that continues yesterday and today is rather than the utility of the local currency system, but rather than the utility of the local monetary system, the debate is,'Is there a political blackout? It is unfortunate that it is flowing in the way of saying,'Can't I?'

I also heard the story of researcher Song Gyeong-ho, a research fellow, who was in charge of the research and summarized the disputed issues.

● What is going on?

At 12 o'clock on September 15th, the Korea Institute of Taxation and Finance, a national research institute, published <Tax Finance Brief No. 105>.

It contained a summary of the study entitled <Influence of the Introduction of Local Currency on the Local Economy>.

This research report was scheduled to be published next month.

If you quote one line from the explanation article linked above, "local currency has many side effects, but there are good points, and the good thing is that you can achieve it with Onnuri gift certificates, so let's activate them more".

Among the articles introducing the research, the research was introduced as'the national research institute directly denied Lee Jae-myeong's remarks' and'the national research institute that beat Lee Jae-myeong'.

Governor Lee Jae-myeong, who has been actively promoting the expansion of local currency since the days of the mayor of Seongnam, immediately went on to say that he was a "poor institution" through SNS.

The reason is that "I slander the important policies adopted and promoted by the government without grounds for Lee Jae-myeong's policy".

He said, “It is a one-sided argument that is presumed to be due to political considerations,” and “it deserves strict censure.”

The Governor's argument, which continued to be under intense pressure by posting all three SNS posts by the day after the announcement, can be largely summarized as follows.

-Local currency has proven its effectiveness.

The same is true of research results of other national research institutes under the Ministry of Public Administration and Security.

-It is not appropriate as a national research institute to slander the policies adopted by the government.

Support government policy.

-Since the empirical research was based on data until 2018, before the implementation of local currency in earnest, it does not match the timing of implementation of the current local currency policy.

-The political intention of Cho Se-yeon, who selects a task in consultation with the Ministry of Information, publishes a research result that does not meet the timeliness, the content is incorrect, contradicts the stance of the government's policy, and ignores the effects felt by the people.

I asked Cho Se-yeon for this point.

● Cho Se-yeon's defense "No political intention" 1 question 1 answer

Cho Se-yeon is very tense as the candidate who ranks first in the next presidential candidate's preference for runners criticizes it as a'redemption'.

Despite the growing controversy, we have not yet made any official positions and are watching the situation.

Research Fellow Song Gyeong-ho, who was in charge of the research, said,'There is no political intention,' and explained the background and purpose of the study, as well as Governor Lee Jae-myung's position on the point.

Q. What is your motivation for the study?

Isn't it a study at the request of political considerations or the Ministry of Knowledge Economy?

A. This is a self-discovered task, and there is no external funding.

It wasn't a service report for the Ministry of Equipment, but the researcher started with a sense of problem.

Probably, if you ask professors of economics about local currency, everyone will answer objectively that it makes no sense.

In fact, it is a structure that cannot be intuitively recognized because the effect similar to striking a barrier occurs locally.

At the time of the start of the study, the system was operated on a scale of less than 3 trillion won, but it increased from 3 trillion to 6 trillion and this year it has increased to 9 trillion.

I thought this might be a problem, so I thought about seeing the actual results, so I proceeded with the research.

From our point of view, it is an objective description of something that is too natural to be intuitive, but I would like you to look at the original text.

Here's the side where Governor Lee Jae-myeong came in and distorted our report with the intention of attacking him.

Q. The timing of publication is an issue. Isn't it strange that the unpublished article was sent out as a brief in advance?

A. When we do our research, it is introduced to the outside in three forms: brief, financial forum, and this report.

As each publishing process went through, the entire report was delayed further.

This report is scheduled to be published in October.

It shouldn't be said that the briefs were pulled out, and there was a difference in speed.

Since this report is about 80 pages long, it will take more time for corrections.

(Currently, this report has been released to the media through the Office of Congressman Kyeong-ho Chu.)

Q. There is a point that the empirical research data is analyzed only until 2018 and is inconsistent with the policy that has spread in earnest from 2019.

A. Our research last year 10 It started from May and ended in the first half of the year, but it was decided to put the 2018 data into the analysis, and reflecting the statistics released at the end of April, it has been delayed until now.

The data we used is a total survey of businesses nationwide registered in the Big Data Center of the National Statistical Office.

This is the data to understand the sales of all businesses.

Data for 2018 came out at the end of April this year.

Data for 2019 will be released in the first half of next year.

I am well aware that it expanded a lot in 19 years.

When additional statistics come out next year, we plan to update them and continue the research.

Q. The results were different in research institutes under the Ministry of Public Administration and Security.

A. We have checked all of them, and will review them thoroughly, and in the future report, we will point out how many problems the studies used to advocate local currency had, and point out the contents one by one.

Governor Lee Jae-myeong also cited two reports, and those reports have many problems.

'Can I support the government policy that puts a lot of money on the basis of this research?'

I have a question.

Q. What did you most want to point out through this study?

A. Local currency was introduced for the purpose of protecting small business owners and revitalizing the local economy. The results showed that the effect was concentrated only in some industries where the effect of protecting small business people was too limited.

Small business owners don't just have supermarkets and grocery stores.

There are many other industries, and there were no benefits, and it is difficult to say that it is justified if only a few industries enjoyed the total amount of government support.

In addition, there are various effects due to regional restrictions, but rather, small local governments with low financial independence can suffer damage.

If you consider the position that only local governments are thinking, they will favor local currency, but the government must consider the welfare of the country as a whole. When everyone starts issuing local currency, it will converge to the worst social balance.

There is a problem with the government supporting it by continuing to spend money.

The best decisions made by local governments and those of the whole country may be different.

Q. In my research, I did not agree with the statement that'the consumer welfare utility was reduced because a large mart could not be used'.

A. Hypermarkets are generally cheap and have high diversity.

Buying less variety at a higher price is of course a loss to consumer welfare.

In addition, when local currency is introduced and sales increase in supermarkets and grocery stores, the prices of the industry will increase.

If the business goes well, you increase the price.

Still, it's expensive and the variety is also inferior, but the higher the price, the worse the consumer welfare.

Q. Was there a process for verifying the research?

A. Presented more than once in front of all the doctors of Seyeon Jo.

In addition, external professors and doctors from other national research institutes were invited as evaluation committee members for review.

In the midst of such debate, academia has come out with a backlash saying that researchers are being pressed.

"Daeno after seeing a research report that seems to be criticizing his own policy? If

this person


greater power, it seems that the Korean version of the Korean version of the division is likely to occur. Where are you afraid to study and write a report?"

-Kwang-Doo Kim (Former Vice Chairman of the National Economic Advisory Council)

"To blame the institution as a'poor institution' because the result of the research is different from his opinion is to blame himself, and lack of quality."

-Jang-Ok Cho, Professor Emeritus of Sogang University (Former President of the Korean Economic Association)

"The person who is a major candidate who should discuss the content and seek a more correct policy does not hesitate to remark against scholars in such a way that only me is right..."

-Han Sang Lee Korea University This

does not mean that state-run research institutes such as Jo Se-yeon have always been praised as sound critics of the government's policy.

Professor Jang-ok Cho, interviewed earlier, also said, "Do many state-run research institutes in Korea produce only truly objective results? It doesn't seem like that. State-run research institutes have only done research to support the government's projects and policies, but objectively evaluate it. That's why a lot of research should be done from a critical point of view, and consumers should also accept it as an opportunity to think about whether the policy is objective and rational.”

Given the circumstances, some analysts say that Cho Se-yeon's research did not simply criticize government policy, but provided a theoretical basis for empowering another policy.

It means that the government is trying to change its policy in the direction of reinforcing Onnuri gift certificates by putting a brake on issuing local currencies from local governments such as Gyeonggi Province.

The'Onnuri Gift Certificate' of the Small Business Promotion Corporation, which insisted that it should be expanded in this study, is also part of the government's policy in which national taxes are applied.

From this point of view, it can be seen as a question of how to divide the budget for regional gift certificates and Onnuri gift certificates that reflect the next year’s budget of 1.3 trillion won.

In the budget for next year submitted to the National Assembly, KRW 1 trillion is reflected in the subsidy for issuing local currency and KRW 270 billion for the issuance of Onnuri gift certificates.

The size of issuance is similar, but the government subsidies are more than three times more local currency.

As a result of this study, if the weight is added to the Onnuri gift certificate, the budget of the Ministry of SMEs and Startups will increase, otherwise the budget to the Ministry of Public Administration and Security and each local government will increase.

On the morning of the 18th, Governor Lee Jae-myung continued criticism by posting a long argument on social media once again.

Instead, the local currency is "a major device to increase the effectiveness of the basic income policy with the Lee Jae-myeong-pyo policy started in Seongnam," and "if it is not for the purpose of protecting large distribution companies and credit card companies that are hit by sales, political intervention. "It's difficult," he continued, arguing that the background was suspect.

This time, it is raising the level of pressure, saying, "If a state-run research institute defends the interests of a certain group and intervenes in politics, it is not a scholar or research to be protected, it is just an enemy to be liquidated."

No criticism was made on the core alternative, the'Onnuri Gift Certificate' proposed in the study.