Discussion on 2nd Disaster Relief Fund Gently Emerging... Hong Nam-ki "No Plans at All"
Over Half of Citizens "Support Disaster Relief Fund Payment"
Experts "Prioritize Job Stabilization Over 2nd Emergency Disaster Relief Fund Payment"
On the afternoon of the 19th of last month, Mangwon Market in Mapo-gu, Seoul, was bustling with citizens shopping. Photo by Yonhap News
[Asia Economy Reporter Kim Ga-yeon] As the government’s emergency disaster relief fund application to overcome the novel coronavirus disease (COVID-19) crisis, which began last month, enters its fourth week, it has been revealed that most households have completed the application and receipt of the emergency disaster relief fund. Voices calling for the payment of a second round of disaster relief funds have emerged in political circles, sparking discussions about additional payments.
Civilians have raised their voices saying, "Additional disaster relief payments are necessary to revitalize the local economy," while others have responded with opinions such as "It is just a waste of taxes," continuing the debate.
Recently, Lee Jae-myung, Governor of Gyeonggi Province, officially proposed to the government the preparation of an additional supplementary budget to provide a second emergency disaster relief fund of 200,000 won per person to all citizens.
On the 2nd, Gyeonggi Province announced that on the 29th of last month, following Governor Lee’s policy judgment that "additional support payments are necessary," it requested the government to include a budget of 10.3685 trillion won needed for the second emergency disaster relief fund of 200,000 won per person nationwide in the government’s third supplementary budget plan.
In response, Kim Doo-kwan, a member of the Democratic Party of Korea, also lent his support, and discussions are expected to intensify. On the 3rd, Representative Kim stated, "Governor Lee requested the central government to provide 200,000 won per person in disaster relief funds to all citizens. I agree with this proposal."
Representative Kim said, "The Democratic Party is discussing a third supplementary budget ranging from 30 trillion to 40 trillion won. The largest supplementary budget is needed for the greatest crisis ever. Just because K-quarantine becomes the global standard does not mean it can stop the tsunami of the economic crisis," and suggested measures including ▲ payment on an individual basis rather than household basis ▲ payment regardless of income or property ▲ suppression of donation methods to promote local consumption ▲ changing the payment authority to local governments.
On the afternoon of the 2nd, Myeongdong Street in Jung-gu, Seoul. Citizens who came out to the street during lunchtime are walking / Photo by Kay Kim katekim221@asiae.co.kr
Survey results confirmed that more than half of the public supports additional emergency disaster relief payments.
On the 4th, a public opinion poll conducted by Realmeter commissioned by TBS on the "Agreement level on the pros and cons of the second disaster relief payment" showed that 51.1% of respondents supported additional disaster relief payments for livelihood stabilization. Meanwhile, 40.3% opposed additional payments due to concerns about the national budget burden, and 8.6% answered that they did not know.
The problem lies in the fact that a budget of 10.3685 trillion won is required to provide 200,000 won per person to all citizens. Although it aims to revitalize the local economy severely damaged by COVID-19, there are concerns that it could ultimately become a burden on the public.
A 50-year-old office worker, Mr. A, said, "Because the economic damage caused by COVID-19 was significant, I think it was acceptable once," but criticized, "It’s populism to spend all the taxes. I don’t think it should be done twice."
He added, "You can’t keep handing out taxes to normalize the economy. Eventually, we will have to repay everything with taxes, so we shouldn’t blindly agree just because we get free money now."
Office worker B (29) said, "I think the economic revitalization from the disaster relief fund is only a temporary effect. If the infection situation prolongs, I think a long-term plan corresponding to that should be prepared."
On the other hand, another office worker C (30) said, "There are people who cannot live without the disaster relief fund right now. Of course, I agree that other policies should be prepared, but I think it should be done alongside the disaster relief payments."
On the 1st, in Wonju City, the emergency disaster relief fund visit registration and payment began. The photo shows the handing over of a prepaid card. Photo by Yonhap News
Experts expressed a negative stance on the second emergency disaster relief payment and suggested that measures to stabilize jobs should be prepared.
Professor Lee Eun-hee of the Department of Consumer Studies at Inha University said, "How long will we keep distributing money to drive the economy? I have a somewhat negative view," adding, "Since the money has already been distributed to all consumers, if additional payments are to be made, they should be selectively supported, such as for those below the 50th percentile of income."
Professor Lee continued, "I think the most important thing is jobs. If jobs are stable, consumers don’t worry much," and added, "It would be good if the government shows concentrated investment on how to maintain jobs."
Meanwhile, the government has dismissed any consideration of a second emergency disaster relief payment so far.
Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said during a Q&A session after the "2020 Second Half Economic Policy Direction" joint government briefing at the Government Seoul Office on the 1st, "As the person in charge of fiscal authorities, I am not considering any additional emergency disaster relief payments at all."
He also expressed a negative stance on the introduction of a basic income system, which has been raised by some, saying, "The government’s position remains unchanged that it is not appropriate to introduce a basic income system under our current conditions."
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