Kim Jong-in Pushes Forward with 'Emergency Economy' Issue... Government Feels 'Embarrassed'

[Image source=Yonhap News]

[Asia Economy Reporters Lee Ji-eun and Jang Se-hee] Kim Jong-in, the general election campaign committee chairman of the United Future Party, is taking the lead in 'economic issues' by proposing to allocate 100 trillion won out of the 512 trillion won budget as funds to respond to the novel coronavirus infection (COVID-19). He criticized the government and ruling party, which proposed disaster basic income and livelihood support payments, as 'populist pandering.'

On the 30th, Kim appeared on MBC Radio's 'Kim Jong-bae's Focus' and said, "I doubt whether they have properly thought in advance about what kind of results would be caused by immediately giving 1 million won each in a populist manner." This was a criticism of media reports that the government plans to provide emergency livelihood funds worth 1 million won to the bottom 70% income households.

He said, "I think they did not think carefully," adding, "If you assume that the COVID-19 situation will end in a short time, it might be okay, but if it is expected to last long, you need to think deeply about how to continuously guarantee income for those without income."

At the Central Election Countermeasures Committee meeting held at the National Assembly that day, Kim additionally proposed, "Since it takes a lot of time to adjust the budget, the president can adjust the budget through an emergency financial order guaranteed by the constitution." He continued, "If a lot of funds are released due to the COVID-19 situation, the already problematic financial market issues could become chaotic again, so measures and plans must be devised," and stated, "We plan to form a COVID-19 Economic Emergency Countermeasures Committee within the election campaign committee to gradually present solutions."

Kim has expressed the position that small business owners, self-employed people, and the unemployed should be continuously supported rather than temporary cash handouts. At a press conference at the National Assembly on the 29th, he said, "The government and the National Assembly should quickly reallocate about 20% of this year's budget items to secure an emergency budget of 100 trillion won," emphasizing, "The COVID-19 emergency economic measures should focus on directly, immediately, and continuously compensating the wages of small businesses, self-employed, and workers until the disaster situation ends."

He said, "It is something that can be done depending on the government's will," adding, "If an emergency occurs in the country, it is always possible to cut about 20% of the budget to secure funds." Regarding the 40 trillion won national bond issuance previously proposed by the United Future Party, he said, "If it does not work with the government budget, you can think of issuing national bonds to supplement the finances," and added, "Reusing the existing budget is the first priority."

The government holds a negative stance on Kim's 'COVID-19 100 trillion won budget.' It is said that the constitutional articles 56 (supplementary budget formulation) and 57 (installation of new budget items) claimed by Kim are impossible. A Ministry of Economy and Finance official said, "Both supplementary budgets and new budget item installations are increases, which require the consent of Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance." He added, "Since government support measures are being prepared, it will be difficult to agree to additional budget increases." Regarding the 20% budget cut across all ministries, he said, "All existing budget projects were organized as needed," and "It is practically impossible because it would eliminate the very purpose of the budget."

It was explained that the government's consent right to increase the budget under Article 57 of the Constitution is being properly exercised, supporting the preparation of a revised budget through review of the National Assembly's increase requests. The relevant constitutional provision clearly states that the National Assembly cannot increase the government's submitted expenditure budget or install new budget items without the government's consent.

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