[Lee·Yoon Pledge Comparative Analysis] 'Universal Basic Income of 1 Million KRW per Year' VS 'Targeted Support for Specific Groups'

Presidential Candidates' Welfare and Environmental Pledges Analyzed

Democratic Party presidential candidate Lee Jae-myung and People Power Party presidential candidate Yoon Seok-youl are attending the 53rd National Breakfast Prayer Meeting of the Republic of Korea held at the Swiss Grand Hotel Convention Center in Seodaemun-gu, Seoul, on the morning of the 2nd, engaging in conversation. (Photo by Yonhap News)

Welfare Should Be Viewed as a 'Basic Right' Not as Charity

Lee Jae-myung, the Democratic Party of Korea's presidential candidate, summarizes his welfare pledge as placing a ‘basic income’ policy on top of the concept of ‘universal welfare.’ The basic income is intended to be provided in the form of non-circulating local currency, aiming to revitalize commercial districts. On the other hand, it is also expected to increase tax trust and enhance tax compliance among high-income earners. His policy perspective is that welfare should not be seen from the viewpoint of ‘charity’ or ‘aid’ but approached as a rightful ‘basic right’ that all citizens should enjoy.

Specifically, starting in 2023, an annual basic income of 1.25 million KRW will be paid to youth, and 250,000 KRW to all citizens nationwide. During the presidential term, this will be expanded to 2 million KRW for youth and 1 million KRW for all citizens. This basic income policy has faced criticism regarding its effectiveness in significantly changing people’s actual lives and whether it is appropriate to distribute money collected through taxes as mere pocket money for some. An annual 1 million KRW equates to about 80,000 KRW per month, which, considering the budget required, is seen as having a low cost-effectiveness.

Lee Jae-myung, the Democratic Party presidential candidate, is attending the 'Broadcast Journalists Club Debate' held at the Korea Broadcasting Hall in Yangcheon-gu, Seoul, on the 2nd, waiting for the debate to begin. Photo by Kang Jin-hyung aymsdream@

Lee, who has actively rebutted these criticisms, has recently softened his stance somewhat, stating that "policies are not final and can be revised." At a press conference on the 1st, he said, "I am confident in the policy and believe it is necessary for future society," but added, "I will persuade and discuss with the public and will not push it through against public opinion." This is consistent with his previous shift before the regular National Assembly session when he faced opposition from the Ministry of Finance and some within the Democratic Party regarding the nationwide disaster relief payments, which he had emphasized since his time as governor of Gyeonggi Province. It remains uncertain whether the ‘basic’ label will be maintained through the process of coordinating pledges with the party. A senior Democratic Party lawmaker said, "The word ‘basic’ is ideological and may be a negative factor in attracting centrist voters," adding, "Many welfare pledges, including basic income, may be revised and refined based on public opinion."

In the environmental sector, Lee presents ‘energy transition and carbon neutrality’ as the overarching theme. To achieve carbon neutrality by 2050, he emphasizes the need to establish a department to oversee this comprehensively, advocating for the creation of a Ministry of Climate and Energy. His environmental policy also envisions creating so-called ‘green industry’ jobs. The plan includes supporting future car industries such as electric and hydrogen vehicles, actively supporting finance and talent development for renewable energy-related businesses, and promoting the transition of fossil fuel companies to green industries. At a town hall meeting with residents near the Boryeong thermal power plant in Chungnam on the 20th of last month, he stated, "We should quickly impose carbon charges to reduce carbon emissions and use part of the revenue to compensate those unfairly burdened, those affected, and to offset price increases caused by industrial transition, distributing it to all citizens."

People Power Party's presidential candidate Yoon Seok-yeol is delivering a greeting at the 53rd National Breakfast Prayer Meeting of the Republic of Korea held at the Swiss Grand Hotel Convention Center in Seodaemun-gu, Seoul, on the morning of the 2nd. (Photo by Yonhap News)

Emphasis on 'Efficiency' and 'Rationality' Over Equality

Yoon Seok-youl, the People Power Party’s presidential candidate, said in a past interview regarding ‘disaster relief payments,’ "Taxes are a cost of economic activity. When costs increase, economic activity inevitably contracts." He added, "Cash welfare should be targeted and concentrated on specific recipients." This summarizes his welfare policy perspective. The policy competition between Yoon and Lee naturally becomes most intense in this area. Yoon has repeatedly stated that compensating small business losses should be prioritized and labels Lee’s basic income and nationwide disaster relief payment pledges as ‘populism.’

In this vein, Yoon chose to provide ‘Youth Leap Guarantee Funds’ to ‘vulnerable youth’ rather than a universal youth basic income. In his acceptance speech as the People Power Party’s presidential candidate, Yoon emphasized the ‘rationality’ of selective welfare, saying, "This election is a fight between Yoon Seok-youl of common sense and Lee Jae-myung of nonsense, between a rationalist and a populist." Um Kyung-young, director of the Era Spirit Research Institute, analyzed, "Conservative parties generally pursue market-based policies, focusing on the market, so they tend to prioritize efficiency over universal welfare, which requires large budgets. However, there is also a realistic issue of needing to compromise somewhere between selective and universal welfare."

Regarding environmental issues, Yoon believes that ‘nuclear phase-out’ and ‘carbon neutrality’ are difficult to achieve simultaneously. To protect the environment, carbon neutrality must be achieved through decarbonization, and he sees no alternative to nuclear power. He plans to resume the prematurely halted 4th generation nuclear power plant project. Yoon positions ‘coal phase-out’ as the basic axis of energy transition while emphasizing the importance of nuclear power. He argues that in the era of the 4th Industrial Revolution, advanced technologies require enormous electricity, and it would be difficult to meet demand without nuclear power. Instead, he promises to develop safer and smarter future nuclear power plants.

His opposition to nuclear phase-out is partly based on his own experience. While serving as Prosecutor General, Yoon led the investigation into the early shutdown of the Wolseong Unit 1 nuclear power plant, during which he learned about the state of Korean nuclear power. He emphasized that nuclear phase-out is "one of the areas that clearly shows why regime change is necessary." He has even mentioned several times that his decision to leave the Prosecutor General position and enter politics was motivated by the nuclear phase-out issue, which aligns with his views on ‘fairness’ and ‘common sense.’

Additionally, based on the recognition that ‘renewable energy’ is necessary and considering Korea’s geographical characteristics, Yoon plans to designate special zones for renewable energy such as wind and solar power. He intends to demonstrate various possibilities of renewable energy in these zones. Alongside this, he has proposed pledges to combat the climate crisis, including clean mobility and smart transportation integrated with 4th Industrial Revolution technologies such as artificial intelligence (AI) and big data.