[President Moon's Policy Speech] Protecting Vulnerable Groups... Urging Prompt Passage of COVID-19 Related Laws

-Promise to Strengthen the Four Major Social Safety Nets: Livelihood, Medical Care, Housing, and Education

President Moon Jae-in is looking at the People Power Party lawmakers who are protesting during his 2021 budget address at the National Assembly plenary session on the 28th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kang Nahum] President Moon Jae-in devoted a significant amount of time to livelihood issues during his policy speech at the National Assembly on the 28th. This appears to be based on the judgment that livelihood problems caused by the novel coronavirus disease (COVID-19) constitute a large part of the ongoing stagnation in approval ratings for the president and the ruling party. He also called for parliamentary cooperation to restore livelihoods.

In his policy speech, President Moon stated, "Since the government’s inception, we have significantly strengthened the social safety net for vulnerable groups through increases in the basic pension, child allowances, the national responsibility system for dementia, enhanced health insurance coverage, and expanded earned income tax credits," adding, "We will further reinforce employment and social safety nets."

The government has implemented various policies such as emergency disaster relief funds, employment stabilization subsidies, and the New Hope Fund for small business owners, as well as expanding the number of basic livelihood security recipients. As a result, the income growth rate of lower-income groups has increased, leading to some improvement in the distribution index.

President Moon described this as a "precious achievement" but acknowledged that "there is still a long way to go." He promised, "Starting next year, we will invest 46.9 trillion won to build a stronger four-pillar social safety net covering livelihood, medical care, housing, and education." Specifically, he plans to abolish the support obligation criteria for livelihood benefits, enabling an additional 157,000 households to receive aid, and to expand the basic pension of 300,000 won to all elderly eligible for the basic pension to secure their retirement income.

President Moon also said, "We will increase government subsidies for expanding health insurance and long-term care insurance coverage to 11 trillion won, and to reduce housing burdens for low-income citizens, we will additionally supply 190,000 public rental housing units," adding, "We will also complete free high school education by expanding it to all grades."

He pledged to spare no effort in protecting vulnerable groups and investing in people. President Moon said, "We will strengthen financial support such as loans and guarantees for small and medium-sized enterprises, small business owners, and self-employed individuals facing difficulties, while also enhancing support for youth employment and housing stability," and added, "We will provide more robust support for farmers, fishermen, veterans, and persons with disabilities through expanded pension payments for elderly farmers, the introduction of a fisheries public service direct payment system, increased veterans’ compensation, and expanded disability pensions."

In this regard, the government has previously allocated 20 trillion won in the budget as a key project to establish a nationwide employment safety net. Accordingly, starting in January next year, the newly implemented ‘National Employment Support System’ will provide employment support services and a monthly job-seeking promotion allowance of 500,000 won to a total of 400,000 people. Additionally, 465,000 low-income artists and workers in special employment types will newly receive 80% support for their employment insurance premiums.

President Moon called for bipartisan cooperation in the National Assembly to resolve livelihood issues. He said, "I hope the National Assembly will promptly conclude the numerous livelihood-related bills such as the Infectious Disease Control and Prevention Act for overcoming COVID-19, the Distribution Industry Development Act, the Small Business Protection Act, and the Employment Insurance Act, and process next year’s budget within the legal deadline to demonstrate a true ‘livelihood National Assembly.’"

He continued, "I ask the National Assembly to fulfill its role for socially vulnerable groups. The socio-economic crisis caused by infectious diseases is not equal for everyone," and added, "I ask the National Assembly to pool wisdom to prepare sustainable measures for those who are not institutionally protected."