● Stimulus-Check-Investment-Guide

From Supplementary Budget Discussions to Saving Small Business Owners: An Outlook on Domestic Demand Revitalization and Liquidity Increase

1. Supplementary Budget and Consumption Stimulus Policies – Official News Emerges

Due to the poor economic situation, the government has begun discussions on a second supplementary budget.
In addition to the structure where increased corporate hiring leads to increased consumption, there is consideration of providing each individual with ₩250,000 directly, as during the COVID-19 pandemic, to stimulate consumption.
These policies will provide short-term relief to domestic demand and directly aid small business owners and the local economy.
The government is planning a supplementary budget of at least ₩20 trillion, which is expected to significantly increase liquidity.

2. Analysis of the Correlation between Construction Market and Domestic Demand

The slowdown in the construction market has impacted not only construction-related jobs but also the domestic demand and small business sectors.
Contrary to the past saying that “the economy is fine even if the construction market dies,” the domestic demand declines when the construction sector contracts.
Consequently, without an upward trend in housing prices, the supply of construction workers and related industries decreases, and consumer sentiment also shrinks.
The government will continue to pursue policies that focus on the construction and local economies, along with the supplementary budget, to overcome this situation.

3. Local Currency Payments and the Effects on Consumption and Investment

There was actual experience of distributing local currency worth ₩200,000 to ₩250,000 in 2021.
At that time, small business owners, especially those running gopchang (grilled intestines) restaurants, benefited greatly.
If ₩250,000 is distributed, local consumption will be stimulated, indirectly benefiting small business owners, franchises, and essential consumer goods companies such as food and home appliance businesses.
Additionally, fintech companies like Kakao Pay are likely to attract investors’ attention based on consumption data.

4. Ripple Effects of the Supplementary Budget: Reactions in Stock, Coin, and Financial Markets

When the government’s supplementary budget involves direct cash support to individuals, liquidity flows into the market.
This money may flow into the stock or coin market, potentially reviving investment sentiment.
Similar to 2021, the liquidity effect from the supplementary budget is expected to be reflected in the price fluctuations of related stocks, such as Kakao.
Furthermore, the domestic coin market, including Kimchi coins, may be re-evaluated under this influence; however, careful consideration of safety aspects is necessary before investing.

5. Sustaining Domestic Demand Revitalization – Repeated Support Needed, Not Just a One-Time Event

Although temporary cash support such as ₩250,000 payments is effective in stimulating domestic demand in the short term, repeated support is needed for long-term economic recovery.
For example, if similar levels of support are provided every three months or during holidays, small business owners and domestic demand can be consistently revived.
If liquidity of up to ₩40 trillion is continuously injected annually, it is expected to have a significant positive impact on the stock and coin markets.
Investors should continuously monitor not only the short-term effects but also the opportunities arising from long-term domestic demand recovery and increased liquidity.

< Summary >
With the announcement of supplementary budget discussions and the distribution of ₩250,000 in local currency, the government's efforts to revitalize domestic demand, support small business owners, and increase liquidity are expected to intensify.
The crisis of domestic demand slump due to the slowdown in the construction market is being addressed, and positive ripple effects are anticipated for fintech companies like Kakao Pay, as well as the stock and coin markets.
Furthermore, a long-term policy to revive domestic demand is essential, requiring continuous investment of resources rather than just a one-time support.

Focuses on the latest economic outlook and investment strategies, centered around keywords such as economy, supplementary budget, liquidity, domestic demand, and stocks.

[Related Articles…]
Summary of the Impact Analysis of the Supplementary Budget
Summary of the Outlook for Domestic Demand Revitalization

*YouTube Source: [Jun’s economy lab]

– 추경20조, 25만원 지원금 어디에 투자해야 할까? (희망편)

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