Lee Nak-yeon "Disaster Relief Fund Payment to be Announced Within Days"... Also Preparing Financial Market Stabilization Measures

Discussion on Market Stabilization Measures Including 10 Trillion Won Stock Market Stabilization Fund at Emergency Economic Meeting on the 24th

Lee Nak-yeon, Chair of the Democratic Party's COVID-19 National Crisis Overcoming Committee, is attending the COVID-19 Response Party-Government-Blue House meeting held at the National Assembly on the 11th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy reporters Wondara and Jang Sehee] The ruling Democratic Party of Korea is concretizing discussions on disaster basic income. A measure to temporarily provide disaster relief funds is expected to be announced within a few days. In this regard, the government plans to prepare support measures at tomorrow's emergency economic meeting, including establishing a bond stabilization fund of over 10 trillion won, a bond collateralized securities (P-CBO) program of over 5 trillion won, and a stock market stabilization fund of up to 10 trillion won.

Lee Nak-yeon, chairman of the Democratic Party's COVID-19 National Crisis Overcoming Committee, said at the COVID-19 National Crisis Overcoming meeting held at the National Assembly on the 23rd, "We will consult with the government on temporarily providing disaster relief funds to help the lives of citizens experiencing the disaster and to stimulate market demand, and will set a direction within a few days." He added, "Many countries have introduced direct support measures for their citizens, and our party has also kept the door open to such plans and reviewed them. Now, the government and the ruling party will coordinate this issue much more responsibly and present it to the public and the opposition party."

Democratic Party leader Lee Hae-chan also appeared on TBS radio the same morning and, when asked about the possibility of a second supplementary budget bill, said, "It is possible," adding, "So far, support has been focused on the supply side. The government and the party are consulting on plans to stimulate demand."

On the 24th, measures to stabilize the financial market will also be announced. Chairman Lee said, "Even financially sound companies that used to post surpluses are under comprehensive pressure, and corporate damage is increasing," adding, "At tomorrow's emergency economic meeting chaired by the president, bold financial market stabilization measures will be disclosed." He also emphasized, "Corporate damage is increasing. We must help companies overcome this difficult time together with their workers. The Democratic Party will work with the government to devise such measures."

In this regard, a government official said, "The second financial market stabilization measures under consideration include establishing a bond stabilization fund of over 10 trillion won targeting financially sound companies, a bond collateralized securities (P-CBO) program of over 5 trillion won, and a stock market stabilization fund of up to 10 trillion won," adding, "The exact amounts will be finalized later today." The bond stabilization fund was originally established in 2008 with a scale of 10 trillion won, and the government is considering expanding this scale.

Meanwhile, this is the first time the Democratic Party has mentioned a specific timeline related to disaster basic income. Until now, the party has taken a cautious stance on disaster basic income. While Gyeonggi Province Governor Lee Jae-myung, Gyeongnam Province Governor Kim Kyung-soo, and Seoul Mayor Park Won-soon have advocated for the introduction of disaster basic income, Chairman Lee said right after the COVID-19 response party-government-civil meeting held at the National Assembly on the 18th, "There were talks today based on the premise of a second supplementary COVID-19 budget," adding, "Some local governments are implementing emergency support policies close to disaster income. If local governments provide support through such methods or incur related burdens, we have agreed to consider compensating for them in the next supplementary budget." The approximately 50 trillion won cost for providing 1 million won per person as disaster basic income, as proposed by Governor Lee and others, was cited as a reason for the realistic financial difficulties.

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