Ruling Party, Government, and Blue House Agree to Double Disaster Relief Funds; 4th Supplementary Budget 'On Hold'... "Contingency Funds Are Sufficient"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] The Democratic Party of Korea, the government, and the Blue House have decided to double the disaster relief funds. However, they judged that the formation of the 4th supplementary budget for flood recovery can be covered by the already allocated contingency funds and decided to hold off on it. The party, government, and Blue House analyzed that about 500 billion KRW will be needed primarily for this flood damage recovery.

Kang Hoon-sik, senior spokesperson for the Democratic Party, said at a briefing held at the National Assembly on the morning of the 12th, right after the 'High-level Party-Government-Blue House Meeting on Heavy Rain Damage Measures,' "The disaster relief fund standards, established in 1955, will be adjusted: the death compensation will be raised from 10 million KRW to 20 million KRW, and the flood support fund will be increased from 1 million KRW to 2 million KRW."

When asked if there is a direction to further increase the compensation amounts, Kang responded, "How could 20 million KRW be sufficient for death cases? However, this means adjusting the standards set 25 years ago," adding, "Following these two items' upward adjustments, the others are expected to be increased as well."

The formation of the 4th supplementary budget was put on hold. Senior spokesperson Kang said, "The supplementary budget formation will be discussed later," and added, "Currently, it is believed that it is possible to proceed without a supplementary budget by utilizing contingency funds."

He stated, "So far, it is estimated that about 500 billion KRW is required for damage recovery," and explained, "The central government is believed to have contingency funds of about 3 trillion KRW plus alpha. The government holds about 2.5 trillion KRW in disaster relief funds."

However, he noted, "There could be additional damage from autumn typhoons, and since it is unpredictable how much more it will increase, whether more funds are needed will be judged later."

Kang also conveyed that there were differences of opinion with the Ministry of Economy and Finance during the party-government consultation. He said, "If you consider it as a persuasion process on why the supplementary budget is not being formed, that would be correct," adding, "Regarding national treasury debt burden acts, these will proceed as contract payments and can be reflected in the main budget next year."

He announced that the additional declaration of special disaster areas will be made within this week. Kang said, "Damage surveys are being conducted until the 12th," and added, "I understand that the Ministry of the Interior and Safety is conducting the final review, and it is expected not to go beyond this week. It would be premature to specify which areas exactly."

Meanwhile, the party-government-Blue House meeting on this day was attended by Prime Minister Chung Sye-kyun, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, Blue House Policy Chief Kim Sang-jo, Blue House Senior Secretary for Political Affairs Choi Jae-sung, Democratic Party Leader Lee Hae-chan, and Democratic Party Floor Leader Kim Tae-nyeon, among others.