Kim Seong-hwan "Heating Support for Ordinary Citizens Too"
Joo Ho-young "Heating Cost Surge, Result of Moon Administration's Populism"
[Asia Economy Reporter Oh Ju-yeon] The ruling and opposition parties clashed over 'selective support' versus 'universal support' regarding the recently soaring heating costs. The Democratic Party of Korea insists that the government's energy voucher support should be expanded not only to basic livelihood security recipients but also to the middle class, while the People Power Party criticized this as 'handout-style populism.'
On the 27th, Kim Seong-hwan, the policy chief of the Democratic Party, appeared on MBC Radio's 'Kim Jong-bae's Focus' and said, "(The government's) energy voucher targets mainly basic livelihood security recipients, accounting for about 5% of all households," adding, "The scope should be broadened so that ordinary citizens can also benefit."
The day before, the government announced a plan to double the winter energy voucher support amount from 152,000 won to 304,000 won for 1.17 million households, including basic livelihood security households and elderly patients. Regarding this, Kim pointed out, "It is much better than doing nothing," but also said, "Not only basic livelihood security recipients but also those just above them, such as the near-poor, ordinary citizens, and the middle class, have all been hit by the heating cost bomb." He emphasized, "In the high-interest rate environment, people are struggling to pay bank interest with their salaries, and with rising electricity bills and public transportation fares, plus the heating cost bomb, other classes also have to tighten their belts significantly," adding, "Measures for that part are also necessary."
On the same day, Kim proposed a plan to provide support for the heating cost bomb in the form of an 'energy high-price support fund,' similar to the 'nationwide disaster relief fund' distributed during the COVID-19 pandemic.
Kim explained, "Excluding the top 20% income earners, for the bottom 30%, 1 million won per four-person household; up to 60%, 800,000 won per four-person household; and up to 80%, 400,000 won per four-person household, designed progressively to help with livelihoods even a little?that is the role of the state." The day before, the Democratic Party proposed to the government and ruling party the payment of an energy high-price support fund of 250,000 won per person (1 million won per four-person household) for the bottom 30% income group, 150,000 won per person (600,000 won per four-person household) for the 30-60% income group, and 100,000 won per person (400,000 won per four-person household) for the 60-80% income group. Along with this, they have reiterated the need to introduce a 'windfall tax' on oil companies and the necessity of a supplementary budget (Chugyeong).
However, the People Power Party countered this as 'populism,' and the confrontation continued on the same day.
Joo Ho-young, floor leader of the People Power Party, said at the party's floor meeting held at the National Assembly in the morning, "The Democratic Party is already demanding a supplementary budget in February," adding, "They cite soaring heating costs as a reason, but the intention is to divert public attention from the party leader's judicial risks."
He also said, "Not only did they irresponsibly manage the state affairs over the past five years, leaving the people with over 1,000 trillion won in debt, but now they want to throw money around again with another supplementary budget," emphasizing, "Although the heating cost surge is due to rising costs and the previous Moon Jae-in administration's energy populism that did not raise gas prices, the party and government are preparing multifaceted measures to ease the burden on ordinary citizens."
Regarding the frequent supplementary budgets compiled during the Moon Jae-in government to overcome the COVID-19 crisis, Floor Leader Joo said, "The public criticizes these as vote-buying supplementary budgets and fiscal addiction," adding, "If the Democratic Party had any sense of responsibility or conscience, they should not be advocating borrowing again to inject more funds."
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