Gyeonggi-do to Provide 100,000 Won Disaster Basic Income per Person to 13.26 Million Residents (Comprehensive)

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will provide 100,000 KRW of 'disaster basic income' per person to all 13.26 million residents.

Lee Jae-myung, Governor of Gyeonggi Province, stated at an online press conference held at the Gyeonggi Provincial Government on the 24th, "In this historic crisis phase brought on by COVID-19, we must turn the crisis into an opportunity and prepare for a new era," adding, "Starting in April, we have decided to provide 100,000 KRW of disaster basic income per resident."

Gyeonggi Province explained that the social discussion on disaster basic income is meaningful as it implements a basic income system targeting all residents regardless of income or age.

Governor Lee particularly noted, "There were opinions to exclude some high-income earners and minors or to differentiate for minors, but this goes against the ideology of basic income," explaining, "Excluding high-income earners is double discrimination against high taxpayers, and the selection cost is excessive. Minors are also residents who pay taxes, and their consumption expenditure demand is no different from adults, so we did not exclude or discriminate against them."

According to this announcement, the province will provide 100,000 KRW per resident starting from the 1st of next month, which means a family of four will receive 400,000 KRW as disaster basic income.

The eligibility for disaster basic income applies to those who are residents of Gyeonggi Province from 24:00 on March 23, 2020, until the application date. According to the resident registration population statistics announced by the Ministry of the Interior and Safety as of the end of February 2020, the population of Gyeonggi Province is 13,265,377.

The province plans to simplify the payment procedure as much as possible. From April, residents can receive the full amount immediately upon application by verifying their identity at the local administrative welfare center in their town or township, representing all household members (a power of attorney is required if the household members are adults).

The Gyeonggi Province-type disaster basic income will be paid in local currency that expires three months after the payment date. By encouraging full consumption within a short period, it aims to achieve a dual effect of supporting households and increasing sales for businesses and self-employed individuals.

The necessary funds of 1.3642 trillion KRW were secured by internally borrowing 340.5 billion KRW from the disaster management fund, 273.7 billion KRW from the disaster relief fund, and 700 billion KRW from the regional development fund created by sales of automobile purchase bonds.

To cover the remaining shortfall, considering the reduced blind spots in support, 50 billion KRW was cut from the 100 billion KRW budget for the ultra-low credit loan project announced last week.

Governor Lee emphasized, "In the era of low growth and the Fourth Industrial Revolution, where excessive concentration of income and wealth and mass unemployment due to technological revolution are concerns, basic income is a core means of inclusive economy advocated by global economic organizations beyond welfare policy, and the only economic policy that guarantees sustainable growth," adding, "While more national discussion, understanding, and financial preparation are needed for our society to fully introduce basic income, the unprecedented economic crisis caused by COVID-19 has made us realize the necessity of basic income and accelerated its introduction."

He also expressed, "We considered various support measures for Gyeonggi residents and local self-employed and businesses in crisis, but there were many conflicts due to insufficient funds," lamenting, "From the province's standpoint, which has no tax decision authority and limited local bond issuance rights, it was difficult to create alternatives that meet all residents' expectations and satisfaction."

He continued, "Thanks to the government's consideration, we were able to utilize the disaster management fund and disaster relief fund, but even gathering all these, it was difficult to exceed 50,000 KRW per resident, so we mobilized all available resources," stating, "Although the amount is small and one-time, I hope the Gyeonggi Province-type disaster basic income will serve as a starting point for national-level basic income discussions and establish itself as a new policy suitable for the new era."

Earlier, on the 23rd, the Gyeonggi Provincial Council's Safety and Administration Committee approved the 'Gyeonggi Province Disaster Basic Income Payment Ordinance,' establishing the first-ever legal basis nationwide for providing Gyeonggi Province-type disaster basic income to residents in case of a disaster. The ordinance will be finally processed at the plenary session of the provincial council's extraordinary meeting on the 25th.

Meanwhile, according to an analysis by the Gyeonggi Research Institute applying the Bank of Korea's 2017 extended input-output table, the economic ripple effects of implementing disaster basic income of 100,000 KRW per person are estimated as follows: production inducement effect of 1.1235 trillion KRW, value-added inducement effect of 622.3 billion KRW, and employment inducement effect of 562.9 billion KRW.

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