The leadership of the People Power Party met with small business owners and self-employed individuals on the 13th and noted, "Although a staggering budget was invested in local currency, the effect is minimal," suggesting credit card cashback and business closure support as alternatives. It seems that while they promised 'targeted support measures' when the self-employed pleaded, "Please help us," they also took a stance against the Democratic Party's 'Lee Jae-myung-style supplementary budget.'
The leadership of the People Power Party visited the Small Business Association in Yeongdeungpo District, Seoul, that day and announced that they would strengthen credit card cashback and business closure support to revitalize domestic demand and increase the actual income of small businesses.
Kweon Seong-dong, the emergency response committee chair of the People Power Party, said, "We are in discussions with the government regarding a large-scale credit card cashback."
He explained, "This is a measure to resolve issues pointed out with local currency, such as the problem of 'the rich getting richer and the poor getting poorer' between regions, the concentration of benefits only in certain industries like academies and hospitals, and the limitation on usage of the Onnuri gift certificate. We plan to closely consult with relevant ministries to ensure that all small business sectors, except for specific industries like department stores and large supermarkets, can receive cashback and will implement it immediately." He also mentioned plans to expand support for vocational training expenses and re-establishment expenses, as well as employment subsidies for small and medium enterprises.
This appears to be a measure to appease the small business owners who noted that a supplementary budget is needed. Song Chi-young, the president of the Small Business Association, said at a meeting that day, "Business is not better than during COVID, and people are crying out for help," asking for a supplementary budget for targeted support.
The People Power Party also believes discussions on a supplementary budget are necessary to revitalize domestic demand. However, they believe that the budget for local currency should be excluded and that a supplementary budget is necessary for domestic recovery, support for vulnerable groups, and strengthening industrial and trade competitiveness including AI.
Previously, the Democratic Party presented a supplementary budget plan worth 35 trillion won that day. Among this, they allocated 13.1 trillion won as the budget for "consumer coupons for economic recovery," providing 250,000 won in local currency to every citizen. In response, the People Power Party emphasized that "the local currency supplementary budget, which is cash-like support, has minimal effects on the real economy." They indicated that a more substantive support measure is needed.
Kweon Seong-dong, the floor leader, also focused on criticizing the local currency project.
Floor leader Kweon noted that there has been much criticism that the Democratic Party's investment in local currency has lacked substantial effects, saying, "Investing a huge budget in local currency led by the Democratic Party has had insufficient practical effects," adding that this populism, which does not stimulate consumption, does not benefit the national economy as a whole and small businesses. He further stated, "If we say we can use it anywhere excluding large supermarkets or department stores, it will not help small businesses."
He mentioned the 'credit card cashback support measure' that the party and government are discussing, stating, "If we return 10% of the spending to consumers, it will benefit the small business owners as well as consumers who use credit cards frequently."
Yoon Hee-sook, chairperson of the Economic Vitality and Livelihood Special Committee, also dismissed the idea by remarking that it is populist to simply distribute money to all citizens instead of first helping the most vulnerable. "We do not engage in such practices," she stated.
She expressed that it's also possible to include the budget for 'strengthening credit card cashback' in future supplementary budgets. Chairperson Yoon mentioned, "If we provide 250,000 won to every citizen, it amounts to 13 trillion won; instead of using that money in such a manner, if we give cashback to small business owners, a significantly larger scale of cashback could emerge."
Meanwhile, the Small Business Association also proposed improvements to the minimum wage system, exemptions for businesses with fewer than five employees under the Labor Standards Act, expansion of the foreigner employment permit system, and long-term repayment of principal for small business loans. In response, Kim Sang-hoon, the policy committee chair, said, "We will do our best to discuss thoroughly with the government and provide good results."