[Q&A] Hong Nam-ki: "Disaster Relief Fund for Bottom 70% Income to Be Maintained by the National Assembly"

Reduction of Civil Servants' Annual Leave Compensation... "Requesting Understanding and Cooperation from the Public Service Community"

[Asia Economy Reporter Jang Sehee] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated on the 16th regarding the 100% payment of emergency disaster relief funds advocated by the political circles, "The government's support criterion of the bottom 70% income bracket was decided after much discussion, considering urgency, efficiency, fairness, and fiscal capacity."

At the briefing on the second supplementary budget bill on the same day, Deputy Prime Minister Hong said, "The government will strive to maintain the current support criterion of the bottom 70% income bracket as it is."

The following is a Q&A with Deputy Prime Minister Hong.

▲There is about a 700 billion KRW reduction in public officials' personnel expenses, and backlash is expected.

=In situations like the COVID-19 pandemic, it is inevitable for public officials and the public sector to actively participate in sharing the burden. I would like to mention that as part of the most effective and prompt way for public officials to participate in sharing the national hardship, the decision was made to reduce annual leave compensation. I believe all public officials will fully understand and sympathize with this.

▲Is there a possibility that cuts in Social Overhead Capital (SOC) and defense budgets will hinder economic growth?

=Since the selection focused on areas where execution is difficult due to delays in contracts or other issues, I believe the originally intended project objectives will not be compromised. For projects with reduced budgets, support will be provided to ensure normal execution as soon as the reasons for delays are resolved. Especially during the preparation of next year's budget, the fiscal authorities plan to actively and preferentially reflect these matters.

▲It seems that discussions are underway in the National Assembly to expand the emergency disaster relief fund to 100% coverage.

=There are calls from some political circles to provide 100% support to all households, but the government’s criterion of supporting the bottom 70% income bracket was decided after extensive discussions, considering urgency, efficiency, fairness, and fiscal capacity. The government will explain the supplementary budget bill to the National Assembly and earnestly clarify the basis for its decision during deliberations. The government will strive to maintain the current support criterion of the bottom 70% income bracket. We believe that the fiscal role will be significant in overcoming the damage to our economy and restoring economic vitality and recovery.

▲The number of households eligible for the emergency disaster relief fund is 14.78 million, but this may change depending on the cutoff criteria. How will the funds saved from cutoff households be used?

=At the time of the initial announcement, it was 14 million households. Based on official statistics from Statistics Korea, it was announced as 14 million households, but the Ministry of Health and Welfare’s health insurance premium database estimated it at 14.78 million households. High-asset individuals will be excluded based on cutoff criteria. For regional subscribers, since the income criteria mostly use 2018 data, some households may be relieved by updating to recent data. The funds saved from the cutoff will be used to provide additional payments.

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