Goheung County in South Jeolla Province is pushing to provide 300,000 won per person to all residents in a livelihood recovery payment ahead of the Chuseok holiday. The payment will be issued in local gift certificates to spur spending in neighborhood commercial districts, as other local governments follow with similar policies or confirm their effects in stimulating regional economies.
Goheung to Give 300,000 Won to All Residents in Gift Certificates Before Chuseok
Goheung County in South Jeolla Province said Tuesday it is reviewing a plan to provide 300,000 won per person to all residents as a livelihood recovery payment. The county is securing the budget and proceeding with administrative procedures, aiming to distribute the funds before the Chuseok holiday that begins Sept. 24.
The payment will be issued not in cash but in 300,000 won worth of "Goheung Love gift certificates" (paper vouchers). The certificates can only be used locally, including at traditional markets and neighborhood commercial districts, with the aim of circulating consumption within the region and supporting sales recovery for small business owners struggling with economic downturn and high prices.
As of May, Goheung County's population stood at 59,047, and the budget needed for the payment is estimated at approximately 18 billion won. The county plans to secure the funds through expenditure restructuring by reducing operating costs and adjusting budgets for less urgent projects. The related supplementary budget bill is set to be finalized after review by the county council in August and September.
Goheung County also provided a livelihood recovery payment of the same size to all residents last year, and it assesses that the local love gift certificates had a positive effect in boosting local consumption at the time.
"We hope it will be of some help to residents and small business owners struggling with high fuel prices and the economic slowdown," a Goheung County official told Yonhap News. "We will continue to support small business owners so that we can bring warmth to the local economy."
Sokcho Also Distributes Payments; Jeongeup Says "99% Spent Locally"
The number of local governments providing livelihood recovery payments continues to grow.
Sokcho in Gangwon Province is providing 200,000 won per person to all citizens as a livelihood recovery payment, coinciding with the launch of its ninth popularly elected administration. The recipients are citizens registered as residents in Sokcho as of the 31st of last month, and the payment will be issued starting the 20th of next month in "Sokcho Love gift certificates." The city council had earlier passed the related ordinance and a supplementary budget worth 15.9 billion won.
The actual effect of the payments on local economies has also been confirmed. Jeongeup in North Jeolla Province said that of the 30 billion won in livelihood recovery payments distributed to all citizens in January this year, 99.4%, or 29.8 billion won, was spent within the region.
By category of use, retail accounted for the largest share at 19.9%, followed by general restaurants (14.4%), food and beverages (12.2%), fuel (10.3%), and medical services (6.1%). In particular, 86.4% of total spending was consumed at local small business stores such as retail shops, restaurants, and beauty salons, while the share used at large retailers stood at just 13.6%.
Jeongeup assessed this as a case in which funds secured through intensive fiscal innovation and budget savings were returned to citizens, increasing neighborhood commercial district consumption and driving a virtuous cycle in the local economy. As these effects have been confirmed, livelihood recovery payments using local gift certificates appear to be spreading as a representative economic stimulus policy among local governments.
