Yongin City Council Member Park Hee-jung’s Bold Call: Why Expanding Local Currency Is Crucial for Small Businesses

Introduction: The Local Currency Debate in Yongin

Did you know that in Yongin, a city of over a million people, the local government’s approach to supporting small businesses is under fire? On June 17, 2025, Council member Park Hee-jung delivered a passionate five-minute speech at the 293rd regular session, criticizing Yongin’s local currency policy as being far behind neighboring cities. She argued that, despite a growing crisis for small businesses, the city remains passive and underfunded in its support efforts[#5][#8].

The Economic Crisis Facing Small Businesses

Let’s break down the numbers: In the first half of 2025, over 33,555 businesses in Gyeonggi Province closed their doors, surpassing even the worst periods of the COVID-19 pandemic. The ratio of closures to new openings has tipped over 1.01, meaning more businesses are shutting down than starting up. Park emphasized that this isn’t just a temporary downturn—it’s a warning that the very foundation of small business survival is collapsing. Yongin is no exception, with empty storefronts and declining local markets becoming the new normal[#5][#8].

Yongin’s Local Currency Policy: Falling Behind

So, what’s the issue with Yongin’s local currency? Park pointed out that, despite having a population of 1 million and being the third most financially independent city in Gyeonggi Province, Yongin’s local currency budget is only 14.6 billion KRW. Compare this to Suwon (41.1 billion KRW), Seongnam (75 billion KRW), and Hwaseong (45 billion KRW)—Yongin is clearly lagging behind. Park questioned whether this was truly a matter of budget constraints or simply a lack of political will[#5][#8][#14][#13].

How Local Currency Works and Its Impact

Local currency in Yongin, known as ‘Yongin Y-Pay,’ is issued at a 6% discount rate, with a total issuance of 234.9 billion KRW in 2025. The city’s investment is 14.6 billion KRW, but Park argued that even a modest increase of 4 billion KRW could generate an additional 80 billion KRW in economic impact. She stressed that this isn’t just about numbers—it’s about the city’s philosophy and policy direction. According to a Gyeonggi Research Institute survey, 56% of affiliated merchants reported increased sales, with an average sales boost of 18%. During the pandemic, local currency was a lifeline, and Park insists it’s even more essential in today’s crisis[#5][#8][#11].

Comparing Yongin to Neighboring Cities: Suwon and Seongnam

Let’s look at what’s happening next door. Suwon has allocated a record 41.1 billion KRW for its local currency program in 2025, offering incentives of 6–10% and making it easy for residents to apply and use the currency at local businesses. Seongnam is even more aggressive, with a special issuance of 500 billion KRW in local currency for the first quarter of 2025, and discount rates of 6–7%. Residents in these cities are quick to snap up the benefits, and the programs are widely praised for supporting both consumers and small business owners[#14][#13][#15].

Community Voices: What Are People Saying?

Online communities and blogs are buzzing with opinions. On Naver and Tistory, residents share tips on how to apply for local currency, celebrate the extra savings, and discuss the positive impact on their daily lives. Some Yongin residents, however, express frustration, saying the benefits are so much better in Suwon or Hwaseong that they’re tempted to get local currency cards from those cities instead. On Instiz and other forums, users debate which stores accept local currency, the limitations of franchise participation, and the need for more inclusive policies. The consensus? People want more support and easier access to local currency benefits[#9][#10][#11][#14][#15][#16].

Cultural Context: Why Local Currency Matters in Korea

For international readers, here’s some background: Local currency programs in Korea are designed to keep money circulating within the community, supporting small businesses and preventing economic leakage to big chains or online platforms. These programs became especially important during the pandemic, when national and local governments used them as a tool to stabilize local economies. The debate in Yongin reflects a broader national conversation about how best to support small businesses in tough times, and whether local governments are doing enough[#6][#7].

Political and Policy Implications

Park Hee-jung’s speech wasn’t just about numbers—it was a call to action. She warned against turning local currency policy into a political football, noting that cities across the political spectrum have adopted these programs to protect small businesses. She also criticized the city’s decision to spend 20 billion KRW on a new bridge over Gihung Lake while local markets are struggling, arguing that budget priorities need to be realigned to focus on economic survival[#5][#8].

What Needs to Change? Recommendations and Next Steps

Park’s recommendations are clear: Yongin should expand its local currency budget, adopt more effective policies, and treat small business survival as a matter of community well-being, not political debate. She called on the city to align with national efforts to boost the economy and ensure that local businesses have the support they need to weather ongoing challenges. The message is simple—when small businesses thrive, the local economy thrives[#5][#8][#6].

Conclusion: The Future of Local Currency in Yongin

As of June 2025, the debate over local currency in Yongin is far from settled. Community members, business owners, and policymakers continue to discuss the best path forward. What’s clear is that local currency isn’t just a financial tool—it’s a reflection of the city’s values and its commitment to supporting those who keep the local economy alive. For anyone interested in Korean society, this debate offers a window into the challenges and hopes of communities striving for resilience in uncertain times[#5][#8][#9][#14].