Publicly Announced Price 1.5 Billion Homeowners with Health Insurance Workplace Subscription Cannot Receive National Support Fund

[Sejong=Asia Economy Reporter Kwon Haeyoung] Even if within the bottom 80% income bracket, a plan is being seriously considered to exclude workplace health insurance subscribers who own a house with a publicly announced price of 1.5 billion KRW (market price 2.1 billion KRW) or more, or who have annual financial income of 20 million KRW or more, from receiving the National Support Fund.

On the 25th, the second supplementary budget task force (TF) composed of ministries including the Ministry of Economy and Finance, the Ministry of the Interior and Safety, and the Ministry of Health and Welfare is in the final stages of reviewing this method of National Support Fund payment. The TF plans to announce the outline of the implementation plan for the three-part COVID-19 damage support package, including the National Support Fund, after its third meeting on the 26th.

The government decided to provide 250,000 KRW per person to households within the bottom 80% income bracket based on the health insurance premium payment amount (June payment).

The baseline for single-income households is ▲5.56 million KRW for 2-person households ▲7.17 million KRW for 3-person households ▲8.78 million KRW for 4-person households ▲10.36 million KRW for 5-person households ▲11.93 million KRW for 6-person households. For dual-income households, the baseline is ▲7.17 million KRW for 2-person households ▲8.78 million KRW for 3-person households ▲10.36 million KRW for 4-person households ▲11.93 million KRW for 5-person households. For single-person households, it is 4.16 million KRW. The baseline for dual-income and single-person households, which had been controversial in terms of fairness, has been significantly relaxed.

However, even if workplace health insurance subscribers meet these income requirements, those who ▲own a house with a property tax assessed value exceeding 900 million KRW or ▲have annual financial income of 20 million KRW or more will be excluded from eligibility. A house with a property tax assessed value exceeding 900 million KRW corresponds to a publicly announced price of about 1.5 billion KRW and a market price of about 2.1 billion KRW. The financial income criterion refers to the 20 million KRW threshold for comprehensive and separate taxation on interest and dividend income. If all financial products yield an annual return of 1.5%, this means holding financial assets of 1.34 billion KRW or more.

This cutoff applies only to workplace health insurance subscribers who are charged health insurance premiums based solely on income. This is intended to adopt the cutoff standard previously proposed when disaster relief funds were to be provided to the bottom 70% income bracket last year.

Within the government, there were opinions that the property tax assessed value should be raised considering the rise in real estate market prices, but these remained minority views. There was also a proposal during the National Assembly deliberation stage to exclude those subject to comprehensive real estate tax (publicly announced price of 900 million KRW or more), but this is also known to have a low chance of being adopted.