Lee Jae-myung "COVID-19 Economic Situation Will Worsen"... Requests 2nd Disaster Relief Fund

[Asia Economy (Seoul) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, proposed to the ruling party, the Democratic Party of Korea, the provision of a second emergency disaster relief fund, stating that "the economic situation due to COVID-19 may worsen."

On the 8th, at the 'Democratic Party of Korea-Gyeonggi Province Budget Policy Council' held at the Democratic Party's representative office in the National Assembly, Governor Lee said, "(The first emergency disaster relief fund) was not just a simple cash support but was fully linked to consumption and sales, so it was actually more effective than welfare policies," adding, "Considering this, support for the second disaster relief fund is necessary."

He continued, "If full support is difficult, a new partial support method is also possible," suggesting raising the incentive for local currency from the current 10% to 20% as an alternative.

Currently, when purchasing 100,000 won worth of local currency, 110,000 won is charged. Governor Lee explained that charging 120,000 won instead would create a virtuous cycle effect to revitalize the local economy. He emphasized that if the incentive is raised to 20%, "supporting 1 trillion won could generate a sales effect of 5 trillion won."

Regarding the recent controversial real estate issues, he proposed, "The strongest policy related to real estate is to reduce unearned income," suggesting the recovery of unearned income as local taxes to provide basic income.

Governor Lee stated, "Please amend the Local Tax Basic Act so that about 1% of taxes related to some real estate holdings can be used by local governments as basic income," adding, "If this is possible, Gyeonggi Province will be the first to implement a project to provide basic income funded by taxes on land holdings."

He also requested, "To reduce large-scale industrial accidents like the Icheon industrial accident, monitoring capabilities must be increased," and said, "While the central government sets the standards, it would be good to share or delegate authority to cities and provinces for supervision and monitoring to ensure proper compliance."

Additionally, he proposed, "Interest rates on high-interest loans are too high," and urged, "Please revise the Interest Rate Restriction Act and the Loan Business Act so that interest rates do not exceed 10%."

In response, the Democratic Party leadership expressed a strong willingness to actively review Governor Lee's proposals and shared opinions on the development plans for Gyeonggi Province.

Party leader Lee Hae-chan said, "Following MERS, Gyeonggi Province has responded promptly and proactively to the COVID-19 crisis," and promised, "We will strive to reflect as much as possible the proposals made at today's budget policy council."

He added, "Our society must block the trend of polarization caused by unearned income this time. The President has a strong will, and the party is also discussing measures with strong determination."

Floor leader Kim Tae-nyeon said, "The resurgence of COVID-19 is serious," and urged, "As the vacation season begins, we cannot let our guard down. You have done well, but please continue to establish thorough quarantine measures."

Kim particularly mentioned, "The distribution of leaflets to North Korea by defector groups is causing anxiety among residents in the border areas of Gyeonggi Province," and said, "We will promptly pass the law banning leaflet distribution to North Korea at the July extraordinary session to prevent this useless and dangerous act that threatens public safety."

The council, which lasted about two hours, was attended by key Democratic Party central officials including Party Leader Lee Hae-chan, Floor Leader Kim Tae-nyeon, Supreme Council Member Park Kwang-on, Chairman of the Committee for Good Local Governments Kim Du-gwan, Secretary-General Yoon Ho-jung, Policy Committee Chair Cho Jung-sik, Finance Committee Chair Yoon Hu-deok, Budget Committee Chair Jung Sung-ho, Budget Committee Secretary Park Hong-geun, Chief Spokesperson Kang Hoon-sik, and Gyeonggi Province Party Chairman Kim Kyung-hyup.

Meanwhile, the province proposed the establishment of a metropolitan-level dedicated administrative organization for disease control during the briefing. The 'establishment of a metropolitan-level dedicated administrative organization for disease control' corresponds to the government's elevation of the Korea Centers for Disease Control and Prevention to the Korea Disease Control Agency and refers to the creation of a dedicated infectious disease control body at the metropolitan level.

The province explained that without local-based on-site execution capability, the quarantine system cannot function properly, making this a prerequisite for resolving the COVID-19 crisis.

Additionally, through a written statement, the province requested national funding support amounting to 1.9204 trillion won for 18 Gyeonggi Province railway projects, including the double-track electrification of the Seohae Line (Hongseong~Songsan), the Sinansan Line, GTX Line A (Samsung~Dongtan and Paju~Samsung), GTX Line C (Deokjeong~Suwon), and the Byeollae Line (Amsa~Byeollae).