Legislative Research Office: "Partial Basic Income Payments Are Just Another Welfare Program"

[Asia Economy Reporter Park Cheol-eung] The National Assembly Legislative Research Office has analyzed that disaster basic income paid to some groups will remain merely another welfare system.

On the 7th, in the 'Comprehensive Report on COVID-19 Response,' the Legislative Research Office stated regarding basic income, "Disaster basic income paid to certain classes or specific groups can be seen as a low-level partial basic income introduction plan rather than a basic income for the entire population," adding, "A low-level basic income system is currently implemented in our country."

Various allowances and assistance systems such as the Seoul Youth Allowance, Gyeonggi-do Youth Job-Seeking Support Fund, and Seongnam Youth Dividend are being operated.

The Legislative Research Office noted, "Such disaster basic income systems may only result in adding another welfare system," citing the example of Japan.

In Japan's case, in response to the 2009 financial crisis, a policy called ‘Teigaku Kyufukin’ was introduced, paying 12,000 yen (approximately 140,000 KRW) per person, but at that time, the consumer price inflation rate was as low as -1.6%.

Administrative costs were also highlighted as an essential consideration. The Legislative Research Office said, "As clearly seen in the most recent example of the child allowance implemented in 2018, administrative cost issues must be carefully considered in selecting disaster basic income recipients, including distinguishing targets by income and property levels, occupational groups, and filtering overlaps with other welfare benefits."

It added, "Even if paid to all citizens, it is estimated that considerable costs and time will be required to prepare the payment methods and means for the entire population."