Hong Nam-ki "Need to Consider Disaster Basic Income... Financial Market Stabilization Measures to Be Announced Soon" (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, expressed a negative stance on the introduction of disaster basic income to respond to the novel coronavirus infection (COVID-19) on the 17th, saying "a considerable amount of review is needed."

On the same day, Hong attended the plenary meeting of the National Assembly's Planning and Finance Committee and responded to Rep. Yoo Seung-hee of the Democratic Party of Korea's proposal to "pay 300,000 won to all citizens as disaster basic income and 500,000 won to the Daegu and Gyeongbuk regions."

Hong said, "It is necessary to address the raised issues regarding disaster basic income," adding, "First, whether it is efficient to give it to all citizens, and second, the issue of funding cannot be ignored."

He continued, "There are limitations in funding, and public consensus on giving it this way is also important," and added, "Although several countries have tried basic income, none have successfully established it."

When Rep. Yoo further asked, "If disaster basic income is set as a baseline of 300,000 won and 500,000 won is given to Daegu and Gyeongbuk, it would cost about 17 trillion won. Is this budget a burden?" Hong replied, "It is necessary to carefully review giving it to all citizens regardless of assets, income, or employment," and added, "This supplementary budget also focuses heavily on vulnerable groups and those in need."

Additionally, Hong said, "We will soon announce financial market stabilization measures, including limits on forward exchange contracts raised in the field."

The government plans to present measures to stabilize the foreign currency fund market, which has become unstable due to the recent impact of COVID-19, within this week.

Regarding questions about the preparation of a second supplementary budget, Hong said, "Rather than using the term 'second supplementary budget,' I have stated that this is not the end of measures, and if necessary, we will prepare and implement additional measures considering market conditions and the trend of COVID-19 resolution comprehensively," adding, "Please understand it within that framework."

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