[Economic Outlook] Government and Ruling Party Consider Compromise Plan for '4th Support Fund'... Real Estate Market Check After Seol Holiday

[Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] As the ruling party and the government have clashed over whether the method of distributing the 4th disaster relief fund should be 'selective or universal,' discussions on a compromise plan are expected to begin in earnest this week. Additionally, the government will conduct a real estate market inspection immediately after the Lunar New Year holiday.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, along with First Vice Minister Kim Yong-beom and Second Vice Minister Ahn Il-hwan, will attend the full meeting of the National Assembly's Planning and Finance Committee on the 16th. Although this is a regular schedule of the February extraordinary session, since the ruling party and the Ministry of Economy and Finance, who have been engaged in a tense standoff over the 4th disaster relief fund issue, will gather in one place, related discussions are expected to take place.

For now, emphasis is being placed on 'selective support' targeting small business owners and self-employed individuals who suffered significant damage due to the third wave of COVID-19. Attention is also focused on the scale of the supplementary budget to be used as funding. The ruling party's proposal for 'universal payment to all citizens' is expected to be pursued separately after the quarantine situation stabilizes, with the aim of revitalizing the domestic economy.

On the 17th, Deputy Prime Minister Hong will preside over a meeting of related ministers to inspect the real estate market. This is to review follow-up supply measures and the real estate market situation after the announcement of the '2.4 Measures' and the Lunar New Year holiday. At the expanded executive meeting on the 8th, Deputy Prime Minister Hong declared a "full-scale response to stabilize the real estate market."

On the 18th, the Ministry of Economy and Finance will release the Household Trend Survey analyzing the financial situation of households based on income and expenditure in the fourth quarter of last year. This will provide insights into household income polarization and consumption expenditure trends due to COVID-19.