Emergency Disaster Relief Fund to 70% Including Middle Class... "Government Secures Resources Through Spending Restructuring"
[Asia Economy Reporter Ryu Jeong-min] "The government has decided, in cooperation with local governments, to provide emergency disaster relief funds of 1 million won per household based on a four-person household to the bottom 70% of income households, including the middle class."
President Moon Jae-in said this at the 3rd Emergency Economic Meeting held at the Blue House on the 30th. This is the first emergency disaster relief fund payment since the establishment of the government. It is expected that more than 9 trillion won in resources will be required. It is an unprecedented move to present the emergency disaster relief fund card to the people suffering from the spread of infectious diseases.
President Moon said, "(The decision to provide emergency disaster relief funds) was not an easy decision and went through many meetings and discussions. All citizens suffered due to COVID-19, and all citizens participated in quarantine efforts. All citizens deserve to be compensated for their suffering and efforts."
The rapid promotion of livelihood support for 'Novel Coronavirus Infection (COVID-19)' is related to President Moon Jae-in's awareness. At the 2nd Emergency Economic Meeting, President Moon requested, "At the 3rd meeting, please quickly reach a conclusion considering the comprehensive financial demand for effective livelihood support measures."
Based on the judgment that the biggest victims of COVID-19 are the 'people,' President Moon instructed to urgently prepare measures that provide practical help for livelihoods. Accordingly, the 3rd Emergency Economic Meeting discussed ▲ introduction plans for emergency disaster relief funds ▲ measures to ease burdens such as social insurance premiums ▲ additional livelihood support measures for vulnerable groups. While President Moon said all citizens deserve compensation, he asked for understanding that emergency disaster relief funds cannot be provided to everyone.
President Moon said, "The government needs to reserve as much fiscal capacity as possible to prepare for the endless economic shock and to respond quickly to employment instability and corporate liquidity crises," and added, "Those who can endure economically a little more are asked to widely understand and yield for those with lower incomes."
President Moon explained, "The government's decision to bear a heavy burden in fiscal management was made because it was deemed necessary to provide comfort and support to the people in difficulty, who have sacrificed their daily activities as the main agents of quarantine and have joined in overcoming the crisis."
In this regard, the government announced specific details through a joint briefing by related ministries around 1:30 p.m. on the 30th. The Ministry of Employment and Labor is responsible for briefing on additional livelihood support measures for vulnerable groups. The ruling party, government, and Blue House responded to President Moon's directive for a swift conclusion. There were also difficulties until the final conclusion was reached.
This is because the Blue House and ruling party, which focus on the comprehensive direction of state administration, and the Ministry of Economy and Finance, which must prioritize national finances, cannot share the same perception. This is also why no conclusion on COVID-19 livelihood support was reached at the ruling party-government-Blue House meeting on the 29th. However, since President Moon's vision had already been revealed at the 1st and 2nd Emergency Economic Meetings, the balance of the conclusion had somewhat shifted.
President Moon judged that a 'paradigm shift' suitable for the emergency situation of COVID-19 was necessary. A key Blue House official explained, "(President Moon) said to make a swift decision, so we must prepare quickly."
The political situation ahead of the 21st general election on the 15th and the issue of securing resources remain tasks. Since the opposition party also agrees on the necessity of COVID-19 livelihood support, it may be easier to pass through the National Assembly. However, it is questionable whether the United Future Party will readily accept the government's plan to provide 1 million won to the bottom 70% income group based on a four-person household.
Kim Jong-in, the United Future Party's general election committee chairman, said on the 30th, "First, solve the problem within the budget set by the people's taxes, and then if necessary, take on debt," and pointed out, "Starting by borrowing money should be reconsidered."
Regarding the funding issue, President Moon said, "Since the prompt payment of emergency disaster relief funds is most important, we plan to quickly submit the 2nd supplementary budget and have it processed by the National Assembly in April, right after the general election," adding, "To reserve fiscal capacity and achieve swift bipartisan agreement, most of the resources will be secured through painful government budget expenditure restructuring. We ask for the cooperation of the National Assembly."
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