<Anchor>



How much is the effect of the local currency? At first, Gyeonggi Governor Lee Jae-myeong and the government research institute called the Tax Research Institute were confronting each other. Continues.

It's a pleasure to argue about economic policy, but it's a problem that the talk gets tougher.



This is Park Sang-jin.



<Reporter>



'Local currency' will shrink the economy of neighboring regions and cause an economic loss of 22 billion won.



This is the main content of the report released by the Institute of Taxation and Finance on the 15th.



Gyeonggi Governor Lee Jae-myeong, who was considered to have been attacked by the representative policy, immediately criticized Cho Se-yeon by writing the expression'a stupid institution'. He said, "I try to beat up scholars and the press."



The Governor Lee shot up the next day, saying, "If I am a populist, the power of the people is a fraudulent group of the times."



Then, Rep. Je-won Jang, the third line of the people's power, and Rep. Yoon Hee-sook, who was an economist, joined the ranks of the attack.



Rep. Jang criticized him as "Governor of Anger Control Disorder," and Rep. Yoon said, "It is to show the shallowness of knowledge to threaten an expert that the expert's analysis results are dissatisfied."



Again, this governor responded one by one.



Rep. Jang's criticism was "that officials don't get angry with public injustice," said Rep. Yoon, "don't hide behind the press, let's argue confidently in the public debate."



However, today (20th), "there may not be the effect of increasing employment, but the effect of transferring consumption from the distribution chaebol to the small and medium-sized business is clear," he wrote, acknowledging some of the shortcomings of local currency.



The'local currency debate' is turning into a wasteful battle with emotional expressions that provoke others overwhelming empirical arguments.



(Video coverage: Kim Hyun-sang, video editing: Lee So-young)



<Anchor>



All things

happen,

but this local currency doesn't have only one aspect.

It started with complaints that big companies in Seoul, such as local money and supermarkets, take it all, so there are many parts that are welcome in the region.

However, it is correct that the central government, which is spending 700 billion won in tax this year alone, has to consider whether this is the best way to sell local currency 10% cheaper.

Some point out that it should lead to healthy discussions beyond emotional fights.



This is Jeon Hyeong-woo.



<Reporter> A



welcome banner was hung at Jungang Market in Seongnam, Gyeonggi Province.



This is because Gyeonggi Province decided to add up to 50,000 won when spending 200,000 won in local currency on Chuseok.



Market traders are responding that the number of customers visiting has increased since the introduction of local currency.



[Banjae-gun/Seongnam Central Market Merchant: Make sure to bring gift certificates for about three out of ten people.

It costs 5,000 won, 10,000 won like this.

I used it while carrying this much, in the market.]



Citizens who use local gift certificates are also responding that they are useful because they can buy relatively cheaply.



[Kim Myung-ja/Seongnam city resident: Sometimes I spend 200,000~300,000 won a year, and sometimes I spend more.

Merchants are good, too, so it's good to buy and use it for a discount.]



The report of the Institute of Taxation and Finance, which was the subject of controversy, also analyzed that it has the effect of moving sales from large supermarkets to small groceries.



[Yun Young-min/Small Mart Employee: Bringing quite a lot of gift certificates and asking a lot now.]



However, the report says that the overall economic effect of the country is limited as the effect of activating consumption in the region can conversely reduce sales in neighboring regions. That's the point.



In a report submitted to the Presidential Commission on Policy Planning in March, the opinion that the expansion of local currency has little effect on employment and other industries, but that data construction should be preceded for analysis of sales effects.



Some of the academic circles are also calling out that the effect of local currency can become more important amid the rapid economic contraction caused by the coronavirus outbreak, and that additional research is needed rather than a wasteful political battle.



(Video coverage: Park Dong-ryul, video editing: Park Ki-deok)