Local Monetary Unit

[Anchor Lead]

The Gyeonggi-do provincial government has introduced its own currency as part of efforts to boost the local economy. The provincial government will use the currency to pay subsidies and dividends to local residents. However, people will likely experience inconveniences using the local monetary unit, as only few stores are now accepting it.

[Pkg]

A customer pays for her coffee with Gyeonggi-do Province's own local currency. The government of Ansan City introduced the local currency on April 1.

[Soundbite] Seo Min-soon(Store Owner) : "Customers go to franchises operated by large companies without much promotion. I expect that more customers will come, as my store accepts the Gyeonggi local currency."

Also available in a credit card-like form, the local currency can be recharged via a smartphone application.

[Soundbite] Oh Ji-eun(Ansan, Gyeonggi-do Prov.) : "I can purchase it at a discounted price and use it often at nearby small businesses."

The local alternative currency is now in use in 17 cities and counties in Gyeonggi-do Province and will expand to other provincial regions within the month. A maximum of 500,000 won can be recharged each month in normal circumstances. Provincial residents will receive all government subsidies, including youth dividends, in the local currency.

[Soundbite] Park Seung-sam(Gyeonggi-do Prov. Gov't) : "We will issue a total of KRW 496.1 bn in the local currency this year-KRW 358.2 bn for paying policy subsidies like basic youth dividends and KRW 137.9 bn for other general purposes."

However, users will inevitably experience inconveniences, as the local monetary alternative is not accepted at online stores and supermarket chains, while its use is limited to areas within Gyeonggi Province. The Gyeonggi-do provincial government plans to issue 1.59 trillion won worth of the local currency by 2022.