Government Disaster Relief Fund Likely to Include 'Local Government Disaster Basic Income'

How to Prevent Duplicate Applications

(Photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] As the government decided on the 30th to provide an 'Emergency Disaster Relief Fund' totaling 1 million KRW for a four-person household to the bottom 70% income households to support livelihoods affected by the novel coronavirus infection (COVID-19), attention is focused on whether overlapping support will be allowed for households receiving disaster basic income at the local government level and existing welfare benefits such as basic pension and child allowance at the government level. If the same relief fund is paid to local governments that have already announced support policies, there could be fairness controversies among local governments, and if households receiving existing welfare benefits are also supported, income disparities may arise between households receiving only the basic income.

Regarding this, Seol Hoon, a Supreme Council member of the Democratic Party of Korea, appeared on CBS radio that morning and said about the overlapping support with disaster basic income announced by each local government, "If some receive less and others receive more, there is a possibility of great confusion, so I think it will be 'organized that way' (not allowing overlapping support)."

Among the nationwide basic local governments, Jeonju City was the first to introduce selective disaster basic income. Jeonju City decided on the 13th to provide 527,158 KRW per person as emergency living expenses to about 50,000 people in welfare blind spots. Gyeonggi Province decided to provide 100,000 KRW per person to all residents. This 'Gyeonggi Province-type disaster basic income' is spreading to basic local governments within the province. After Gyeonggi Province Governor Lee Jae-myung announced the 'Gyeonggi Province-type disaster basic income' on the 24th, 11 cities and counties in the Gyeonggi area joined by the weekend of the 29th. The payment amount ranges from 50,000 to 400,000 KRW. In the case of Pocheon City, which will pay the highest amount of 400,000 KRW among the cities and counties, residents will receive a total of 500,000 KRW per person by adding Gyeonggi Province's 100,000 KRW.

If local government support is received in addition to the government's emergency disaster relief fund, a difference of up to 500,000 KRW per person may occur depending on the place of residence. If overlapping support is allowed, the central government, metropolitan governments, and basic local governments will provide emergency disaster relief funds threefold, inevitably causing regional fairness controversies.

Whether overlapping support with existing welfare benefits such as child allowance is allowed is also a key issue. As of this year, the basic pension provides up to 253,750 KRW per month for general recipients aged 65 or older below a certain income threshold, and up to 300,000 KRW for low-income recipients. The child allowance provides 100,000 KRW per child under the age of 7. If basic income is paid in addition to the basic pension and child allowance, reverse discrimination may occur between households receiving only the basic income and those receiving existing welfare benefits.

The government's emergency disaster relief fund is likely to be paid in installments over three months. A second round of support is also being considered. Representative Seol said, "If 1 million KRW is given at once, it is likely to go into savings, so it seems that it will be paid in installments of 300,000 KRW per month as a way to stimulate consumption," and added, "Even if the COVID-19 situation calms down, the economy will not recover immediately, so (emergency disaster relief) is likely to be provided up to the second round."

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