In Politics, "Worst Flood Damage, 4th Supplementary Budget Needed"... Lee Nak-yeon Says "Will Respond with Reserve Funds"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] In the political sphere, there are calls to formulate a '4th supplementary budget' for flood recovery. The leadership of the Democratic Party of Korea has not yet expressed any position on this matter.

On the afternoon of the 9th, Democratic Party lawmaker Shin Dong-geun posted on his Facebook, "The prolonged rainy season and heavy rains have caused massive damage nationwide," adding, "It is difficult to cope with just the contingency funds currently available. It is inevitable to formulate the 4th supplementary budget." He continued, "The 4th supplementary budget is necessary to curb the economic downturn and to address the employment crisis and unemployment caused by the COVID-19 economic crisis," emphasizing, "I urge the urgent passage of the 4th supplementary budget by convening a special session of the National Assembly in August."

Independent lawmaker Lee Yong-ho, classified as part of the pro-government camp, also issued a press release stating, "Due to the recent heavy rains, the embankment of the Seomjin River collapsed, causing severe flooding in villages around Namwon Geumji-myeon, Songdong-myeon, Daegang-myeon, Sunchang Yudeung-myeon, Jeokseong-myeon, Donggye-myeon, and Imsil Gwanchon-myeon, submerging greenhouses and livestock farms, resulting in the worst flood damage." He added, "These areas should be designated as special disaster zones, and the National Assembly's Budget and Accounts Committee should push for the 4th supplementary budget for flood recovery."

Lawmaker Lee emphasized, "The Nam-Im-Soon area in the Seomjin River basin is literally in chaos due to the deluge," and added, "Moreover, Typhoon No. 5 'Jangmi' is moving northward, increasing the likelihood of additional damage."

[Image source=Yonhap News]

However, the Democratic Party leadership has not yet announced a position on formulating the 4th supplementary budget for flood response. Democratic Party lawmaker and party leader candidate Lee Nak-yeon said on his Facebook that day, "It is still difficult to accurately assess the nationwide damage, but it seems possible to respond with the contingency fund of 2 trillion won and the existing budget," adding, "Nevertheless, we will closely monitor the damage situation and do our best to respond." Previously, the government and ruling party passed supplementary budgets of 11.7 trillion won for the 1st round, 12.2 trillion won for the 2nd round, and 35.1 trillion won for the 3rd round this year.

Meanwhile, the necessity of the 4th supplementary budget was first raised by the opposition parties. Kim Jong-in, emergency committee chairman of the United Future Party, said to reporters after a closed-door meeting at the National Assembly on the 6th, "Since many disaster areas have occurred, if no budget has been allocated for flood damage, we have no choice but to proceed with a supplementary budget."

On the same day, Ahn Cheol-soo, leader of the People’s Party, proposed at a Supreme Council meeting held at the National Assembly, "Let's utilize the disaster recovery budget and contingency funds." He continued, "If that is not sufficient, we must promptly undertake emergency recovery and support, as well as permanent facility reinforcement, even if it means formulating a disaster supplementary budget including changes to the main budget expenditure items."