'4th Disaster Relief Fund' Passed to National Assembly... Will Payment in March Become a Reality?

15 Trillion Won Supplementary Budget Passed at Cabinet Meeting
9.9 Trillion Covered by Government Bond Issuance
Ruling Party Plans to Complete Payments Within This Month
Opposition Reacts Against Cash Distribution and Key Election Issues

[Image source=Yonhap News]

[Asia Economy reporters Ryu Jeong-min and Gu Chae-eun] With the passage of the 15 trillion won supplementary budget bill for the 4th disaster relief fund payment at the Cabinet meeting, the ball has now moved to the National Assembly.

The ruling party plans to complete the payment within this month following the roadmap of ‘submission of the supplementary budget bill to the National Assembly on the 4th → Prime Minister’s policy speech on the 5th → review of the supplementary budget bill by the 20th.’ The opposition party criticizes it as a ‘cash handout’ ahead of the April 7 by-elections, calling it a ‘government-led election,’ but there is no way to block its passage in the National Assembly due to the current parliamentary composition.

President Moon said at the Cabinet meeting on the morning of the 2nd regarding the supplementary budget for the 4th disaster relief fund payment, "I ask the National Assembly for swift processing and discussion so that support can be provided to the struggling people as soon as possible." Hong Ik-pyo, the Democratic Party’s Policy Committee Chair, also appeared on the radio that day and addressed concerns about inflation caused by the issuance of 9.9 trillion won in government bonds, stating, "Currently, countries around the world are issuing government bonds similarly, and our country’s level is relatively low," adding, "Since deflation is a bigger concern than inflation, worries about currency value decline due to bond issuance are not significant."

However, the opposition party raised its criticism level, expressing concerns about the impact of the disaster relief fund payment on the election. Kim Jong-in, the Emergency Committee Chairman of the People Power Party, said that morning, "The 3rd support fund has not been properly completed, and there is no concrete plan on what criteria will be used for the 4th payment," emphasizing, "A clear explanation is needed on whether the taxes paid by the people are being appropriately distributed."

The government has provided disaster relief funds three times since the spread of COVID-19 last year. Starting with the 1st disaster relief fund (totaling 14.3 trillion won) universally paid to all citizens in May last year, followed by the 2nd disaster relief fund (totaling 7.8 trillion won) selectively paid to specific groups such as small business owners from October last year, and the 3rd disaster relief fund (totaling 9.3 trillion won) which began payment in January this year.

Meanwhile, President Moon also expressed concerns about fake news related to COVID-19 vaccinations. He emphasized, "Our country’s vaccination infrastructure is better established than any other, and the speed and vaccination rate (such as for flu shots) are unmatched," adding, "If people trust the government and actively participate in vaccination according to the designated order, we will become a model country not only in K-quarantine but also in achieving herd immunity."