Bloomberg: "Korea Wins Over Japan in COVID-19 Cash Support for 'Efficiency and Speed'"

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] In response to the economic impact caused by the novel coronavirus infection (COVID-19), the governments of South Korea and Japan provided cash payments to their citizens. On the 21st, Bloomberg News evaluated that South Korea, which has relatively more technologically advanced administrative procedures, outpaced Japan, which relies heavily on paperwork.

Bloomberg reported that although the two Northeast Asian countries decided to provide cash support similarly, there was a stark contrast in the speed and efficiency of delivery. The budget bills for cash payments were simultaneously passed in the parliaments of South Korea and Japan on the 30th of last month, but there was a significant difference in the speed of disbursement.

In terms of stimulus measures, the South Korean government provided disaster relief funds ranging from 400,000 to 1,000,000 won per household, while the Japanese government paid 100,000 yen (approximately 1,130,000 won) per person to all citizens. As of the 19th, 80% of all households in South Korea had received disaster relief funds, whereas in Japan, 72% of local governments had started sending application forms by mail, and only 19% had begun transferring money to residents' accounts.

Bloomberg stated, "South Korea's centralized administrative power and identification system are key factors in such rapid payments," explaining that the resident registration number allows the government to access individual records. This eliminates the need for Japan's method of verifying residency one by one through documents. The report also cited the smartphone culture based on the world's fastest wireless communication network as a success factor.

Bloomberg introduced that every time the disaster relief funds are used via card, a text message notifies the user of the amount spent, encouraging consumption within three months. It also mentioned the case of truck driver Lee Jongcheol, who easily received 400,000 won through an online application.

In Japan, only 16% of citizens possess the PIN number and card necessary for personal identification, so administrative procedures are mainly paperwork-based. Bloomberg reported that it takes about a month to receive the card itself, and the process can be blocked if the PIN number is entered incorrectly multiple times.

Bloomberg reported that Japanese citizen Kobayashi Nami, who was invited to a public hearing in March and appealed to Prime Minister Shinzo Abe about the economic difficulties of self-employed businesses, has yet to receive the 100,000 yen and is still waiting for the application form by mail. Hairdresser Sato Emiko, after considering various methods, decided it was better to wait for the application form by mail, saying to the media, "I realized how backward Japan's administration is."

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