Seol Hoon: "Starting April, 25 Million People to Receive 1 Million Won... Second Support If Needed"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] The Democratic Party of Korea, the government, and the Blue House are pushing for a plan to provide emergency livelihood support funds of 1 million KRW to households with a monthly income below 7.12 million KRW (based on a family of four) due to the COVID-19 crisis. They are also considering a plan to provide a first round of support in April, followed by a second round.

Seol Hoon, a Supreme Council member of the Democratic Party, appeared on CBS Radio on the morning of the 30th and said regarding the previous day’s discussion on disaster basic income among the party, government, and Blue House, "We have adjusted the monthly income for a family of four to 7.12 million KRW," adding, "The standard is 1 million KRW for a family of four, with some receiving less and some more." He further stated, "This targets the bottom 70% income group, about 25 million people."

Regarding the payment method, he said, "It will be done in two forms (gift certificates and cash) mixed together," adding, "For provinces and cities where Zero Pay is not available, cash will have to be given since Zero Pay cannot be provided, and even where Zero Pay is available, there will be situations where cash must be given, so it will be a mix of the two."

When asked whether the policy is to avoid overlapping support with disaster basic income announced by local governments, he replied, "It seems that we need to organize it that way."

He explained, "If 1 million KRW is given all at once, there is a possibility it will go into savings, so as a method to stimulate consumption, the government will not give 1 million KRW at once but will split it into amounts like 300,000 KRW and 300,000 KRW."

Regarding the timing of payment and whether it can start from April, he said, "The government’s current intention is to ensure execution starts at least from April."

He added, "If necessary, a second round will be provided," and "Even if the COVID-19 situation calms down, the economy will not recover immediately, so emergency livelihood support funds may be provided up to the second round."

Regarding criticism of 'populism,' he said, "Looking at cases in the US, Europe, and Japan, they are investing 10 to 20 times more fiscal resources than us to overcome this, so we are not in a position to talk about populism," adding, "There is no time to debate. We must execute quickly."

Regarding the school reopening on April 6, he said, "It seems the announcement will be made within today or tomorrow," adding, "It will be difficult for 12th graders (high school seniors) to return to school immediately; they will start online and gradually move to in-person attendance. It is clear that it will be done in stages."