Lee Ju-yeol "Selective Disaster Relief Payments More Effective in Boosting Consumption Than Universal Payments"

October 15 National Assembly Planning and Finance Committee Audit

Lee Ju-yeol, Governor of the Bank of Korea, attended the National Assembly's Public Administration and Finance Committee's audit of the Bank of Korea held at the National Assembly on the 15th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jang Sehee] Lee Ju-yeol, Governor of the Bank of Korea, stated regarding the consumption stimulation effect of disaster relief funds, "The consumption effect is inevitably greater when the funds are more concentrated on groups with a higher propensity to consume."

Governor Lee made these remarks on the 15th while attending the National Assembly's Planning and Finance Committee audit. He explained that directing disaster relief payments primarily to lower-income groups has a greater consumption stimulation effect than providing payments to the entire population.

Regarding basic income, he avoided a direct answer, saying, "Since it is an election pledge of a prominent presidential candidate, it does not seem appropriate for the central bank governor to comment on it."