Urgency Gone from 'Emergency Disaster Relief Fund'... "When on Earth Will It Be Given?"

Related Supplementary Budget Proposal Submitted to the National Assembly Last Week
National Assembly Still Considering '100% Payment Plan'

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Concerns are growing over delays in the actual disbursement timing of the 'Emergency Disaster Relief Fund' that the government announced it would provide in response to the novel coronavirus infection (COVID-19) crisis. It has been over 20 days since the government announced its plan to provide cash support targeting the bottom 70% income group to stimulate consumption, but the government has yet to specify even the application schedule. Although the key lies with the National Assembly, the ruling party insists on expanding the payment target, while the main opposition party is in a situation where internal recovery is needed due to election defeat, making it difficult to speed up the processing of the related supplementary budget bill.

According to the National Assembly and government on the 19th, the National Assembly will hold a plenary session on the 20th to start deliberations on the supplementary budget bill for the Emergency Disaster Relief Fund, beginning with listening to the government's policy speech. Prior to this, on the 16th, right after the general election, the government submitted a supplementary budget bill worth 7.6 trillion won to the National Assembly for the disbursement of the Emergency Disaster Relief Fund. The plan is to provide 1 million won per household based on a four-person household to 14.78 million households in the bottom 70% income bracket, with related costs to be covered through expenditure restructuring without issuing deficit bonds.

However, for this supplementary budget bill to lead to actual disbursement, it must overcome at least two hurdles: ▲ the ruling Democratic Party's claim that payments should be expanded from 70% to 100%, and ▲ the possibility of objections from the United Future Party, which needs internal recovery after election defeat.

For now, the ruling party, which won a landslide victory in the general election, is steadfast in its claim that the payment target should be expanded from 'selective payment to the bottom 70% income group' to 'universal payment to all citizens.' The Democratic Party intends to increase the 7.6 trillion won supplementary budget bill submitted by the government at the National Assembly and pay 1 million won per household based on a four-person household to all households regardless of region, income, or class. The expected budget is around 13 to 14 trillion won.

[Image source=Yonhap News]

The situation of the opposition party, which needs to negotiate this, is also problematic. The main opposition party, the United Future Party, saw its leader Hwang Kyo-ahn resign after the election defeat, and Shim Jae-cheol is acting as the floor leader, but the internal atmosphere is so chaotic that it is difficult to stabilize. Moreover, the United Future Party, which initially advocated for 'universal payment to all citizens,' may oppose the ruling party's plan, citing concerns such as deterioration of fiscal soundness.

Senior spokesperson Kang Hoon-sik also emphasized in a verbal comment the day before, "It is regrettable that concrete negotiations on the plenary session schedule for the supplementary budget bill approval have not progressed," and "We earnestly request the United Future Party leadership to come to the negotiation table and actively engage in discussions."

If the supplementary budget bill remains in the National Assembly longer than initially expected, the actual disbursement of the 'Emergency Disaster Relief Fund,' whose basic plan was finalized by the government on the 30th of last month, is likely to be delayed beyond early May, more than a month after the announcement. This is why there are criticisms that the Emergency Disaster Relief Fund does not seem urgent at all.

Local governments, which will be responsible for disbursing the support funds on the front lines, are receiving a flood of complaints and inquiries. A local government official explained, "We receive dozens of calls a day asking when the payment will be made and whether applications can be made now," adding, "Since local governments have not received clear schedules, it is difficult to provide guidance, and inquiry calls often turn into complaints." In particular, confusion is often caused as disaster basic income applications and payments are being promoted simultaneously by each local government separately from the government's Emergency Disaster Relief Fund. Another local government official said, "We need to start services soon that visit households directly, especially targeting elderly households, along with online and offline application explanations," and added, "We are also struggling due to a shortage of guidance personnel."

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