Emergency Disaster Relief Fund, President Ultimately Supports Hong... '70% Payment' Gains Momentum

President Moon Jae-in Chairs 5th Emergency Economic Meeting
"Pass the 2nd Supplementary Budget as Quickly as Possible, Prepare for Immediate Execution" Urged

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Regarding the target recipients for the emergency disaster relief fund, on which opinions between the ruling party and the government diverged, President Moon Jae-in sided with Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, who advocated for a "selective payment to the bottom 70% income bracket." This decision was based on the judgment that, considering the severity of the spread of the novel coronavirus disease (COVID-19), the payment should be made as quickly as possible. It is expected that the ruling party, which had been advocating for universal payment, will also yield and support the original plan.

On the 22nd, President Moon presided over the 5th Emergency Economic Meeting at the Blue House and said, "I emphasize again that speed is the most important," adding, "Please complete the execution of the first supplementary budget as quickly as possible, and prepare to pass the second supplementary budget as quickly as possible so that it can be executed immediately." He continued, "It is more important than anything else to swiftly implement the emergency economic measures announced so far," and urged, "Considering that the National Assembly has a mountain of urgent tasks to handle during this extraordinary time, I earnestly ask for a magnanimous agreement and a swift decision."

Through these remarks, President Moon effectively supported the government’s plan to selectively provide relief funds to the bottom 70% income group. Concerns arose that the golden time for urgent financial aid to low-income citizens and self-employed individuals, who are struggling to make ends meet, could be missed amid the ongoing disputes between the ruling party, opposition, and government. At the Cabinet meeting on the 14th, he had also instructed to notify eligible recipients and start pre-application procedures even before the National Assembly’s review of the second supplementary budget, emphasizing that "speed is the most important."

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is attending the Cabinet meeting held at the Government Seoul Office Building on the 21st. Photo by Hyunmin Kim kimhyun81@

If the ruling party accepts the original second supplementary budget plan following President Moon’s remarks, it is highly likely that the National Assembly’s review will be completed within this month. In that case, after administrative procedures such as application and local government review and notification, actual payments could be made swiftly by mid-May.

Previously, the ruling and opposition parties and the government had been engaged in disputes over the recipients of the disaster relief fund. The situation became complicated especially because both parties mentioned "universal (100%) payment" as a pledge during the general election campaign. After the election, the Democratic Party of Korea maintained its original stance, but the opposition party suddenly supported the government’s plan submitted to the National Assembly on the 16th. Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki repeatedly emphasized the "necessity, effectiveness, and fairness" of the original plan and vowed to persuade the National Assembly accordingly. However, at the Supreme Council meeting on the 22nd, Lee In-young, floor leader of the Democratic Party of Korea, said, "We ask the United Future Party to clearly state its final position on the emergency disaster relief fund," and added, "If the United Future Party changes its party stance to 70%, the Democratic Party will also consider a response and finalize its position within a day or two," leaving room for negotiation.

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