Selective 20,000 KRW Telecom Fee Support Excluding Ages 40-50... Citizens 'Frustrated'
Ruling and Opposition Parties "Telecom Fee Support Excludes Main Economic Activity Ages 35-64"
Experts "Principles Needed for Selective Support... Standards Unacceptable to Anyone"
The ruling and opposition parties agreed to selectively support communication expenses based on age in relation to the 4th supplementary budget. The photo shows a telecommunications store in downtown Seoul on the 23rd. Photo by Yonhap News
[Asia Economy Reporter Kim Ga-yeon] The government initially planned to provide a 20,000 KRW communication subsidy to all citizens aged 13 and above but has now announced selective payments to those aged 16?34 and 65 and older, sparking ongoing controversy. Those aged 35?64, excluded from the payment, have raised their voices, arguing that age-based selective payments are unreasonable. Experts pointed out that the criteria for selecting recipients lack persuasiveness, leading to fairness debates.
On the 22nd, the ruling and opposition parties announced an agreement on the 4th supplementary budget for 2020 at the National Assembly. According to the agreement, the communication subsidy recipients were narrowed down to those aged 16?34 and 65 and above. The communication subsidy item, initially allocated 920 billion KRW in the draft, was reduced by about 520.6 billion KRW.
The ruling and opposition parties explained that those aged 35?64 excluded from the support were generally considered to have fixed incomes. The intention was to reduce household burdens for youths and elderly groups with relatively low income compared to adolescents.
Lee Nak-yeon, leader of the Democratic Party of Korea, said during a meeting with reporters at the launch event of former leader Lee Hae-chan’s biography, "Please understand that the selective payment decision was inevitable due to the urgency to quickly execute the supplementary budget. I am glad that the supplementary budget will be processed without delay."
Park Hong-geun, the Democratic Party’s secretary of the Budget and Accounts Special Committee, explained, "This is the result of defending the subsidy when the opposition demanded a complete cut of the communication subsidy. The intention is to provide minimal support to many people engaged in non-face-to-face activities due to COVID-19, even if they are not part of the economically active population."
However, as criticisms arose that age-based selective payments rather than income or asset criteria are inappropriate, dissatisfaction has spread mainly among those aged 35?64 excluded from the support.
They expressed grievances, saying that the economically active group, which plays a significant role in taxation, was excluded from benefits. Some also vented frustration that even if they lost jobs or income due to the prolonged COVID-19 pandemic, they cannot receive support because they do not fall within the eligible age range.
Female and male lawmakers are taking a commemorative photo after signing the agreement on the 4th supplementary budget for 2020. From the left, Park Hong-geun, Democratic Party Whip of the Special Committee on Budget and Accounts, Jeong Seong-ho, Chairman of the National Assembly Budget Committee, Kim Tae-nyeon, Democratic Party Floor Leader, Joo Ho-young, People Power Party Floor Leader, and Chu Kyung-ho, People Power Party Whip of the Budget Committee. Photo by Yonhap News Agency
There are also concerns about inconvenience in the payment process, as some elderly mobile phone users use phones registered under their children’s names. Since the payment is made by deducting 20,000 KRW from the September communication bill in October without a separate application process, those using family-registered phones must change the registration to their own name to receive support.
A self-employed person in their 40s, who said they are temporarily closed due to COVID-19, expressed frustration, saying, "It is absurd to assume that those aged 35?64 generally have fixed incomes. Most self-employed people fall into the excluded age group. Even though it is only 20,000 KRW, I am angry because I don’t understand the support criteria."
They added, "It would have been better to provide the same 20,000 KRW as local currency to revitalize the local economy. The communication subsidy money goes straight to the telecom companies anyway, so I wonder if there was a more effective way to reduce household burdens."
A worker in their 20s said, "Both my parents have retired, so I am the only one economically active in the household. My parents have no income, but since they are not 65 or older, they cannot receive support. Does this make sense?"
They continued, "Income and assets vary greatly even within the same age group. Some inherit billions right after birth, while others have debts despite being economically active. I think support should have been given to those who could truly benefit from the 20,000 KRW, considering their asset levels."
Experts viewed the lack of specific and practical criteria for selecting recipients as the reason why public consent was not obtained.
Professor Kim Tae-gi of Dankook University’s Department of Economics said, "Selective support requires principles, but since no one was convinced, it is undeniable that it violates fairness. If the communication subsidy plan had to be maintained with selective payments, the public should have been convinced of the principles. But that did not happen."
Professor Kim added, "What can be expected in the current situation is that, due to budget constraints, there are parts of the criteria that are hard to accept. I believe it would have been better to withdraw the communication subsidy plan."
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