Oh Se-hoon, the mayor of Seoul, noted on the 16th regarding the Lee Jae-myung government's distribution of consumer coupons for livelihood recovery that "temporarily injecting money is among the worst solutions."
The mayor said during a press briefing marking his third anniversary in office, "Since it is the early stage of the administration, it is something to accept."
He also mentioned, "It seems the Democratic Party also acknowledges that this is not a repeatedly usable policy tool," adding, "Once, the Seoul city will tighten its belt and cooperate by taking on debt, but it is troublesome if it becomes a recurring issue."
The mayor stated, "The government initially said it would cover the full amount, but it has passed the costs onto local governments," adding, "Seoul has no choice but to issue local government bonds, and it is actually difficult to justify them for specific purposes."
He further remarked, "I reluctantly agree to the stubborn approach of trying to overcome this difficult economic situation with a policy of temporarily injecting money, but it is by no means a desirable course of action," and stressed, "It is not a policy that should be implemented repeatedly, especially when coerced into taking on debt."
The mayor predicted that such government cash support policies would lead to rising real estate prices.
He said, "When money is released into circulation, real estate prices will rise," and explained, "Although injecting money under the pretext of a recession may stimulate consumption to some extent, it will ultimately lead to an increase in currency supply."