"Overcoming the COVID Economic Crisis Without Budget Expansion"
"Government Budget Reallocation and Presidential Emergency Powers Are Essential"
[Asia Economy Reporter Kim Hyemin] Shin Sedon, co-chairman of the Future United Party’s joint election committee, stated on the 10th, "The government's export and domestic demand revitalization measures are only nominally revitalizing," and claimed, "Although they say they will invest 56 trillion won, the actual amount is only 8 trillion won."
Shin attended the joint election strategy meeting of the Future United Party and the Future Korea Party held at the National Assembly that morning and pointed out, "President Moon Jae-in should stop holding emergency meetings and come up with practical measures." Earlier, the government held an emergency economic meeting chaired by President Moon and announced export and domestic demand revitalization measures worth 56 trillion won.
Regarding these measures, Shin said, "Out of the 56 trillion won, 36 trillion won is trade finance, and of that, 30 trillion won is for extending the maturity or guarantees of trade insurance," adding, "When they say trade finance is 36 trillion won, people mistakenly think that 36 trillion won of new money is coming in, but it actually means extending existing guarantees or insurance from last year by one year, so it does not mean new funds are being injected."
He also emphasized about the part that aims to ease tax burdens by 12.4 trillion won, "Upon closer inspection, it only means deferring comprehensive income tax and local taxes for three months," and added, "While it may ease the burden of tax benefits, it does not actually reduce the tax burden." Regarding the 3.3 trillion won prepayment and advance purchase measures, he criticized, "Since it is just spending money earlier, it means there will be no money left to spend later."
Shin summarized, "Although it seems like an enormous amount of 56 trillion won is being invested to revitalize exports and domestic demand, the actual content amounts to only 8 trillion won," and stressed, "Our election committee judges that exports will not be revitalized with this. Stop dithering and talking about unrealistic plans and come up with practical measures."
He raised his voice, saying, "Employment retention measures for small business owners and SMEs should have already been announced. Unemployment measures, emergency jobs, and new job measures should have already been released," and added, "Measures for people in their 30s to 50s who risk their lives working two or three jobs to pay for their children's academy fees should have already been announced." He then criticized, "How long will they keep listing plans? When will the job measures for people in their 40s, promised in March, be released?"
Earlier, the Future United Party’s election committee proposed a total of six measures to overcome the economic crisis caused by the novel coronavirus infection (COVID-19).
▲ Reorganize about 100 trillion won, which is 20% of the 513 trillion won budget allocated for 2020, to secure necessary funds without tax burdens ▲ For rapid execution, the president should promptly invoke the emergency financial and economic command authority stipulated in Article 76, Paragraph 1 of the Constitution ▲ Immediately provide emergency disaster relief funds of 500,000 won per person to all citizens suffering from the COVID-19 economic crisis ▲ Provide immediate support for health insurance premiums, electricity bills exemption, tax payment deferrals, and up to 10 million won proportional to decreased sales or income compared to last year for 3 months or longer to about 15 million small business owners, self-employed, sales workers, contract workers, and freelancers ▲ Establish a national infectious disease prevention and defense system including the establishment of a National Public Health Department to prepare for the upcoming global pandemic ▲ Immediately provide special disaster scholarships of 1 million won per person to 3.5 million university and graduate students who are struggling to continue their studies due to the economic impact of COVID-19.
Shin emphasized, "These measures were created under three principles: to support COVID-19 damage immediately, directly, and sustainably; all support must be provided without expanding the budget; and for this, rapid government budget reorganization and the president’s invocation of emergency financial and economic command authority are essential."
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