Sinsedon "Reduced Salaries Also Supported by Fiscal Measures"... Future United Party Announces 240 Trillion Won Economic Plan

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Following the Future United Party's call for a fiscal shift worth 100 trillion won, it has prepared a COVID-19 response package totaling 240 trillion won. The core of the plan is to fully compensate the income of those facing employment crises such as leave of absence or layoffs through fiscal measures and to provide financial support worth 100 trillion won to industries in crisis such as aviation and accommodation.

On the 30th, Shin Se-don, co-chairman of the Future United Party's joint election committee, stated at a press conference at the National Assembly Communication Office, "We have prepared a total of 240 trillion won in measures, including 40 trillion won in emergency disaster relief funds for self-employed individuals, 100 trillion won for employment and local government support as advocated by Kim Jong-in, the overall election committee chairman, and 100 trillion won in financial support to prevent a chain of bankruptcies."

Earlier, the Future United Party proposed providing support funds ranging from 5 million to 10 million won depending on the extent of damage to small and medium-sized self-employed businesses and contract workers facing management difficulties, along with measures to support national health insurance premiums, electricity bills, and water bills. The total amounts to 40 trillion won.

Additionally, Chairman Kim emphasized that 20% of this year's budget of 512 trillion won should be reallocated to secure 100 trillion won in resources. With these resources, the plan includes fully compensating the income of those whose working hours have decreased or who are on leave or laid off, and reducing companies' burdens for industrial accident and employment insurance. He also added that fiscal resources should be invested to supplement local governments' tax revenue losses and budget shortfalls.

Finally, to prevent corporate bankruptcies caused by economic downturns, he stressed the need for financial support worth 100 trillion won for affected industries such as aviation, transportation, accommodation, hotels, and distribution.

Park Hyung-joon, co-chairman of the joint election committee, said, "The government's plan to distribute 1 million won each to the bottom 70% income group may be a populist measure that does not sufficiently consider fiscal soundness," and emphasized, "Our support method assumes that the COVID-19 crisis will last for a considerable period, allowing continuous support during the crisis period, and there is a difference in the method of funding."

He added, "Although some of these points were mentioned in today's announcement by the Deputy Prime Minister, in a crisis situation, bold and preemptive measures are necessary," and urged, "Please reconsider the resource procurement through budget amendments and national bonds that we proposed."