"House Flooded but Disaster Relief Fund Only 2 Million Won?"... Increase in Disaster Relief Fund Being Proposed

National Assembly Demands Ministry of the Interior and Safety to Adjust Support Funds Through Settlement Correction Request
Consideration Expected for Reflecting Official Land Prices and More

On August 9, heavy rain caused flooding and other damage in the middle of Namseong Sagye Market in Dongjak-gu, Seoul, where trash accumulated as merchants cleaned up their stores.
[Image source=Yonhap News]

[Asia Economy Reporter Naju-seok] Government support payments will be increased when there is damage such as house flooding. A plan to raise the payments by reflecting official land prices, considering the price gap between regions, is being reviewed.

According to the National Assembly's Public Administration and Security Committee's settlement review on the 6th, the National Assembly requested the Ministry of the Interior and Safety to update the disaster damage recovery costs and support payment calculation standards through settlement correction demands.

Currently, when a house is flooded or damaged due to a natural disaster, support payments are made based on the damage details reflected in the National Disaster Management System (NDMS). The current standards are set at 2 million KRW for house flooding, 8 million KRW for partial destruction, and 16 million KRW for total destruction.

Lee Chae-ik, Chairman of the National Assembly's Public Administration and Security Committee, is presiding over the full committee meeting held at the National Assembly on the 29th.
[Image source=Yonhap News]

Although these support payments were increased in 2020 after 25 years, the payment standards are still far from reality. Before the increase, 13 million KRW was paid for total destruction of a house, and 1 million KRW for flooding.

The Ministry of the Interior and Safety expressed acceptance of the National Assembly's correction demand on last year's settlement, stating, "To realize the support for house restoration costs, we will consult with the Ministry of Economy and Finance and related ministries."

In the National Assembly, it was recommended to reflect official land prices in the compensation calculation method. Lee Hyung-seok, a member of the Democratic Party of Korea, pointed out at the Public Administration and Security Committee's budget and settlement subcommittee, "Instead of applying costs uniformly, it would be better to link them to a certain percentage of the official land price," adding, "We cannot apply the same standards to the damage in Gurye or Gokseong two years ago and the damage in Seoul and the metropolitan area this time." This means that differences in house prices should be reflected in the support payments. The Ministry of the Interior and Safety responded, "We will consider it."

Earlier, in the policy research report ‘Natural Disaster Recovery Cost Calculation Standards’ conducted by the Ministry of the Interior and Safety last year, it was concluded that "Even for facilities of the same specifications, there are differences depending on site conditions, so it is necessary to improve by preparing detailed standards that can reflect site-specific conditions through follow-up research to match reality."

For landslides, only the landslide area is reflected, but the damage amount is not considered, and for soil erosion, the damage details are applied only by area, which differs from actual material and labor costs. This part will also be updated to reflect realistic damage assessment standards and recovery support unit prices.