Ahn Cheol-soo: "Considering Korean-style Basic Income... Prioritizing Distribution to Vulnerable Groups"

"Concerns Over Politicians Advocating Basic Income... Disaster Relief Fund to Become a Legal Case"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Ahn Cheol-soo, leader of the People’s Party, stated on the 4th, “When social inequality exists, based on Rawls' theory of justice that government welfare resources should be prioritized for disadvantaged groups, we intend to focus on reviewing the introduction plan of the Korean-style basic income (K-basic income).”

At the Supreme Council meeting held at the National Assembly that day, Ahn said, “Under the premise of providing a material and mental sanctuary where citizens can rest comfortably, we will consider and explore the Korean-style basic income system as a customized welfare system according to welfare needs and economic conditions.”

He added, “For the youth, payments will be differentiated according to welfare needs, but if they work even a little, in addition to the income provided by the state, additional income earned from work will be recognized. For low-income working groups, we will expand the Earned Income Tax Credit (EITC) dramatically so that they can take home more income proportional to their work.”

He continued, “For the elderly generation, we plan to design a Korean-style welfare model for the entire life cycle that can meet demands according to the level of retirement preparation and welfare needs.”

Ahn said, “We have already experienced a basic income with an unclear identity, namely the COVID disaster income. We still cannot help but ask whether this truly fits the nature of disaster relief funds and whether it is a policy for the disadvantaged and socially vulnerable,” and criticized, “I am concerned that politicians’ claims for basic income might inadvertently become a replay of the COVID disaster relief funds.”

Ahn stated, “If a competition of populist policies arises ahead of elections and the public does not have sufficient time for proper verification, the harm will ultimately be passed on to the people, especially the younger generation. Basic income is a significant policy that requires changing the country’s fundamental system. If basic income becomes a competition over who can give more, it could lead the country to ruin.”

He emphasized, “An objective analysis of our country’s welfare system is necessary. Among OECD member countries, South Korea has the lowest income redistribution effect through welfare systems. Experts point out that under these circumstances, the so-called n-divided-by-1 style basic income, which is evenly distributed to all citizens, would damage the national fiscal capacity and make it difficult to reduce income inequality in our society.”