20,000 KRW Communication Fee Support for All Citizens Aged 13 and Over, 500,000 KRW for Unemployed Youth
Seongnam City "Considering Independent Seongnam Solidarity Safety Fund Support Even If Debt Occurs"
[Asia Economy reporters Kim Hyunjung and Jang Sehee] The second round of disaster relief funds, scheduled to be distributed before Chuseok, includes support not only for self-employed individuals and small business owners but also child care coupons and communication fee support for those aged 13 and older. Critics argue that the inclusion of policies close to universal payments undermines the original intent of targeted, customized support. As most of the second disaster relief funds are financed through deficit bonds, the lack of justification and unclear benefits of the support measures are expected to spark intense controversy.
According to the ruling party, government, and presidential office on the 10th, the government will submit a fourth supplementary budget (supplementary budget) worth around 7 trillion won to the National Assembly on the same day. Due to strengthened social distancing measures, 2 million won will be uniformly paid to all businesses among the 12 high-risk facilities whose operations have been suspended, except for entertainment bars and karaoke bars.
Communication fees of 20,000 won will be supported for all citizens aged 13 and older, and 500,000 won will be provided per person to unemployed youth. Child care coupons worth 200,000 won will be given to households with preschool and elementary school children, and up to 2 million won in support funds will be provided to vulnerable employment groups such as special employment workers (special contract workers). Looking at the recipients of this disaster relief fund, it has a strong universal character covering all citizens from children to the elderly.
According to multiple government officials, the Democratic Party strongly advocated for child care coupons and communication fee support for those aged 13 and older. As complaints arose from people who did not receive disaster relief funds, the party hurriedly decided to split the budget to provide support. A government official said, "There was no discussion about communication fee support during the initial supplementary budget discussions," adding, "Given that the entire nation is suffering from COVID-19 and the amount is not large, the opinion emerged that universal support is appropriate."
Initially, the ruling party and government planned to provide communication fee support only to those aged 17-34 and 50 and above, excluding those aged 35-49. However, due to backlash from the excluded groups, the policy shifted from selective to universal payment. According to the resident registration population statistics in August, those aged 13 and older (46.4 million people) account for 89.5% of the total population. Regarding the 500,000 won payment to long-term unemployed youth, some interpret it as a measure to appease the strong opposition from people in their 40s and 50s.
Of the supplementary budget, which is expected to be in the mid-7 trillion won range, 5 trillion won will be allocated to support self-employed individuals and small business owners, and the remaining 2 trillion won will be distributed to communication fees, long-term unemployed youth, and households with elementary school children to broaden the scope of support. However, this contradicts the original intent of the fourth supplementary budget, which was to prioritize support for those affected by COVID-19. It also conflicts with President Moon Jae-in's earlier statement that "while the idea of providing funds to all citizens has merit, the reality of fiscal difficulties is significant."
Gyeonggi Province Governor Lee Jae-myung said in a KBS radio interview on the same day regarding the uniform 20,000 won communication fee support, "It is regrettable because it is difficult to expect an effect of increasing sales for small self-employed businesses or neighborhood shops," adding, "Since the communication fee goes directly to the telecom companies, there is no multiplier effect." Choi Hyun-soo, a research fellow at the Korea Institute for Health and Social Affairs, also pointed out, "Existing welfare recipients and employment stability support funds are added as is, but citizens who have become financially strained due to income reduction fall into blind spots," and said, "The second emergency disaster relief fund contradicts the original intent of selective support." Choi further stated, "There has been no preparation or improvement in data or delivery systems for distributing support funds since the controversy over the first disaster relief fund," adding, "There is no preparation, and no feasible method."
Some support funds, such as emergency employment support and unemployed youth support, are expected to have significant overlap in applications. While the government emphasizes speed and plans not to screen for overlaps with existing beneficiaries, concerns are rising about fiscal waste due to overlaps between cash support and existing welfare policies.
The aftershocks of the second disaster relief fund due to selective payments are also expected to be severe. Even before the second disaster relief fund is distributed, some local governments are discussing additional support measures by directly securing resources. Governor Lee has stated that he would provide additional support even if it means issuing local bonds, and Seongnam Mayor Eun Soomi has also declared her readiness to incur debt and provide an independent second disaster relief fund (Seongnam Solidarity Safety Fund) separately from government disaster relief funds and other measures if necessary.
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