"High-Income Earners Donate? No Way" Public Outrage Over Disaster Relief Fund

Ruling Party and Government Agree on 'Voluntary Donation' Compromise... Emergency Disaster Relief Fund of 1 Million Won to Be Paid to All Citizens
Citizens Protest "Government Forcing Donations", "Waste of Taxes"
Kim Jae-won Says "Cannot Run the Country on Sponsorship"

Kim Jae-won, the chairman of the National Assembly Budget and Accounts Committee from the United Future Party, is expressing his position on the emergency disaster relief fund due to the novel coronavirus infection at a press conference held at the National Assembly Communication Office on the 21st. Photo by Yonhap News

[Asia Economy Reporter Kim Gayeon] The government and the Democratic Party of Korea have agreed to provide emergency disaster relief funds of 1 million won (based on a family of four) to all citizens in response to the novel coronavirus disease (COVID-19). The financial burden arising from this will be alleviated through voluntary donations from social leaders and high-income earners. However, there is strong public backlash against the compromise plan of 'voluntary donations,' as it cannot enforce donation or refusal of receipt, rendering it ineffective.

On the 22nd, the Democratic Party announced that it will maintain the policy of 'providing emergency disaster relief funds to all citizens' as pledged in the general election manifesto. Instead of limiting the recipients to the bottom 70% income bracket, the scope will be expanded to all citizens, while reducing the financial burden through voluntary donations from high-income groups.

Cho Jung-sik, chairman of the Democratic Party's Policy Committee, held a press conference at the National Assembly on the same day and stated, "Under the principles of urgency and universality, we are promoting the expansion of emergency disaster relief funds to all citizens, and we also plan to prepare measures to alleviate the financial burden through voluntary donations from social leaders and high-income earners."

Regarding ways to encourage participation in donations or returns, he explained, "We will consider revising the Income Tax Act to recognize this as a donation and provide tax credits. When the payment process begins, if the recipient says 'I will not receive the payment and will donate it,' that portion will be treated as a donation and tax credits will be provided at the end or beginning of the year."

Previously, the government submitted a second supplementary budget bill worth 7.6 trillion won to the National Assembly based on providing funds to the bottom 70% income bracket. Expanding the recipients to all citizens would require an additional 3 to 4 trillion won, making bond issuance inevitable.

Within the United Future Party, negative voices are emerging, so an agreement is expected to be delayed.

Kim Jae-won, chairman of the National Assembly Budget and Accounts Special Committee and policy chief of the United Future Party, held a press conference at the National Assembly on the same day and said, "The Democratic Party's claims lack specificity," and demanded, "There is no data to review the budget. If the Democratic Party has reached an agreement with the government, please submit a revised budget bill."

Cho Jung-sik, the Policy Committee Chairman of the Democratic Party of Korea, is briefing on the emergency disaster relief fund payment related to the supplementary budget at the National Assembly on the 22nd. From the left, Park Chan-dae, the floor spokesperson, Cho Jung-sik, and Yoon Kwan-seok, the Senior Deputy Chairman of the Policy Committee. Photo by Yonhap News

As a result, criticism is growing among the public as well. Citizens collectively called the 'voluntary donation' compromise plan "an unreasonable measure." There are also repeated criticisms that the criteria for classifying high-income earners are unclear.

A man in his 50s, office worker A, said, "I think the voluntary donation approach will ultimately only waste administrative costs and manpower," adding, "If the existing standard of the bottom 70% income bracket was not reasonable, shouldn't a more concrete plan have been presented?"

A said, "The criteria for distinguishing between high-income and low-income groups have not yet been announced," and criticized, "In the end, voluntary donations will be requested from the top 30%, but can the government handle the public backlash?"

A man in his 30s, office worker B, said, "'Voluntary donation' sounds good, but isn't it basically giving and then taking back?" He questioned, "What happens if there are no voluntary donations after the government borrows money and distributes funds to all citizens?"

B added, "The government's giveaway-style support will ultimately fall on the taxpayers," and pointed out, "There will be citizens who feel unfair for not receiving support, but I believe it is right to support the vulnerable groups who face immediate livelihood difficulties without disaster relief funds."

Meanwhile, Chairman Kim of the Policy Committee pointed out that inducing voluntary donations is a method that does not currently exist under tax law.

In an interview with CBS Radio's 'Kim Hyun-jung's News Show' on the 23rd, Chairman Kim said, "Distributing support funds to citizens while expecting donations to cover the costs cannot be considered a normal way of running a country," and strongly criticized, "A country cannot be operated by sponsorship."

He continued, "Most of the 7.6 trillion won in the current budget is adjusted from existing budgets, but if more than 3 trillion won in new bonds are to be issued, there is no content in the existing budget, so a revised budget must be prepared and submitted again," emphasizing, "The National Assembly cannot be operated through illegal means."

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