Ruling Party and Government Begin Serious Discussions on Disaster Basic Income... Hong Nam-ki Expresses Concern Over "Out-of-Step Policy"

Hong "Concerns Over Out-of-Step Policies"... Government Still Reluctant

[Image source=Yonhap News]

[Asia Economy Reporters Kwangho Lee, Sangdon Joo, Sehee Jang] President Moon Jae-in directly mentioned the issue of providing 'disaster basic income' to support citizens' living expenses, indicating that a conclusion is expected soon. The disaster basic income is likely to be actively discussed at the third emergency economic meeting chaired by President Moon next week. Currently, there is a strong focus on prioritizing support for 'necessary areas' such as lower-income groups. However, within the government, there remains a strong negative stance regarding the effectiveness of the disaster basic income.

According to the ruling party, government, and Blue House on the 25th, although opinions still differ on the scope and amount of payments, the internal atmosphere at the Blue House is reportedly focused on selective priority support for vulnerable groups based on income. The ruling party and government are expected to accelerate discussions on disaster basic income within this week. On the same day, Lee Nak-yeon, Chair of the Democratic Party's COVID-19 National Crisis Response Committee, stated, "The third emergency economic meeting next week will reach a certain conclusion on livelihood support measures," and urged, "The ruling party and government should closely consult within the week on direct support to the public, including disaster relief funds."

However, the government expresses reluctance toward disaster basic income due to difficulties in securing funding, delivery systems, and concerns about fairness and effectiveness.

On the night of the 24th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, wrote on his Facebook, "Some point out that disaster relief payments might become a mismatched policy where money is distributed without actual places to spend it." He added, "For the policy to be effective, timing and speed are important, but it is also crucial to consider the situation and the order in which policies are implemented." He further stated, "Even if urgent, it is necessary to strategically prepare and implement response measures in accordance with procedures, including emergency quarantine and mask measures, fiscal, tax, and financial packages, regional economic recovery support, currency swaps, and financial stability, which I believe is the way to minimize the economic damage caused by COVID-19." In other words, he expressed a negative stance on providing disaster income support to the entire population.

There are still opinions that the option of cash support to all citizens cannot be ruled out, due to concerns that controversies over fairness and equity may arise. Gyeonggi Province has decided to provide a uniform payment of 100,000 KRW next month to all 13.26 million residents. The funds will be sourced from the disaster management fund, disaster relief fund, regional development fund, and low-credit loan project expenses.

Regarding this, Eun Minsu, a visiting professor at Korea University's Department of Public Policy, said, "It is true that not only vulnerable groups but many people have suffered damage, so there is an argument that providing support universally to many people is fairer, but it depends on how one views the concept of equity." He added, "Instead of disaster basic income, emergency disaster allowance or special disaster allowance might be more acceptable to gain public consent." In response, a government official said, "Nothing has been decided yet, so it is hard to comment, but it is unlikely that 'national income,' which could imply 100% payment to all citizens, will be used."

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