Relay Supplementary Budget Review Begins... Variables of 'Populist Budget and TK Support'

Goal for the 17th, Review Starting This Week
United Future Party "Will Filter Out Election Budget"
TK Region Budget Allocation Also a Controversy

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] The ruling and opposition parties will begin reviewing the supplementary budget for responding to the novel coronavirus infection (hereinafter referred to as the COVID-19 supplementary budget) starting this week, aiming to pass it on the 17th.

Although the ruling and opposition parties have agreed to process the COVID-19 supplementary budget within the February extraordinary session of the National Assembly, there are disagreements over the details. The core issues are the cash-type direct support budget and the budget for Daegu and Gyeongbuk (TK) regions. Unlike the ruling party, which emphasizes accepting the original plan, opposition parties such as the United Future Party argue that populist budgets should be reduced and the TK budget expanded.

The National Assembly will begin preliminary reviews of the COVID-19 supplementary budget by each standing committee starting on the 10th. On the 11th, a comprehensive policy inquiry by the Special Committee on Budget and Accounts is scheduled. Subsequently, from the 13th, the Budget Subcommittee of the Budget Committee will hold detailed reviews, and the COVID-19 supplementary budget bill is expected to be processed at the plenary session on the 17th, the last day of the February extraordinary session. Both ruling and opposition parties have agreed to expedite the supplementary budget process, signaling a tight schedule, but it remains uncertain whether the review will proceed smoothly.

While the ruling party emphasizes that the supplementary budget should not become a political battle, the United Future Party is determined to thoroughly filter out election-oriented budgets. A representative project that the United Future Party considers an election budget is the '400,000 KRW payment per child.' The government included in this supplementary budget a plan to provide households raising children aged 0 to 7 (eligible for child allowance) with local love gift certificates worth 100,000 KRW per child per month, totaling 400,000 KRW. The budget scale is 1.5 trillion KRW.

Regarding this, Sim Jae-cheol, floor leader of the United Future Party, stated, "The budget for securing masks is only 7 billion KRW, but the populist welfare is 3 trillion KRW," and added, "This is an unnecessary budget that gives 400,000 KRW to every household regardless of income level." A Budget Committee official from the United Future Party also emphasized, "Considering that parents of children under 7 are generally in their 30s to 40s, this is an election budget," and "Due to the nature of the gift certificates, it is highly unlikely they will be used for childcare purposes. They should be completely cut."

[Image source=Yonhap News]

The budget size for the TK region, which has been hit hardest by COVID-19, is also expected to be a point of contention. The United Future Party criticizes that the budget allocated to the TK region, their stronghold and the area directly impacted by the COVID-19 crisis, is insufficient. They claim that out of the 11.7 trillion KRW supplementary budget, only 620 billion KRW, or 5.2% of the total, is allocated to the TK region.

The opposition also criticizes that most of the budget for supporting self-employed and small business owners is provided in the form of loans. A United Future Party official said, "If you look closely at the contents, it just means to endure with loans." Hwang Kyo-ahn, the party leader, also criticized on Facebook, saying, "This COVID-19 supplementary budget does not reflect the desperate feelings of the people at all."

In response, Lee Nak-yeon, co-chairman of the Democratic Party's joint standing election committee, said at the COVID-19 National Crisis Overcoming Committee meeting on the 9th, "I do not think the supplementary budget is perfect. We will gladly accept productive proposals from the opposition," and emphasized, "I ask both ruling and opposition parties to stop political battles, gather wisdom, and cooperate to overcome this serious national crisis."

This content was produced with the assistance of AI translation services.