"Even Kim Jong-in is Concerned" Voices for Basic Income from Both Ruling and Opposition Parties... Will Discussions Gain Momentum?

Growing Support for Basic Income Adoption Among Ruling and Opposition Parties
Ministry of Economy and Finance Repeatedly Opposes, Saying "Not Appropriate Under Current Conditions"... Painful Process Expected
Experts Say "Consensus Needed Among Politicians, Experts, and Citizens"

On the afternoon of the 18th of last month, a banner indicating that payments can be made with 'Daegu Metropolitan City prepaid cards, Onnuri gift certificates, and government disaster relief cards' was hung in front of a sock stall at Seomun Market in Jung-gu, Daegu. / Photo by Yonhap News

[Asia Economy reporters Seung-gon Han and intern Juhyung Lim] As voices supporting the introduction of a basic income system grow louder across the political spectrum, including both ruling and opposition parties, discussions related to basic income are expected to gain momentum.

However, some quarters, including the Ministry of Economy and Finance, argue that the introduction of basic income is premature due to its low effectiveness compared to the costs involved, suggesting that difficulties are anticipated.

Experts advise that various stakeholders such as politicians, economic experts, and the public should come together to reach a consensus on basic income through public discourse.

Lee Jae-myung, Governor of Gyeonggi Province, announced on the 2nd that he has requested the government to allocate 10.3685 trillion won necessary for the second round of government disaster relief funds as part of the third supplementary budget (supplementary budget) currently being pushed for passage in the National Assembly this month.

In a post on Facebook that day, Governor Lee explained, "Even if the novel coronavirus disease (COVID-19) ends, the economy is likely to remain weak for a considerable period. To facilitate economic circulation, demand must be strengthened rather than supply," adding, "Supporting disaster basic income two to three times would be much more helpful."

Governor Lee has repeatedly emphasized the necessity of the basic income system before. On the 23rd of last month, he wrote on Facebook, "Disaster basic income is not a welfare policy but an economic policy," and urged, "It should be regularized and started as a basic income system."

The basic income system is a policy that provides equal income to all members of society regardless of income, property level, employment status, or willingness.

Regarding the necessity of this system, Governor Lee explained, "Unlike the past era of high economic growth, we are now in a low-growth era characterized by stagnation due to insufficient consumption," and added, "Government fiscal policy should also focus on supporting consumption capacity."

Kim Jong-in, Emergency Response Committee Chairman of the United Future Party, is giving a lecture at the United Future Party's freshman meeting held at the National Assembly Members' Office Building on the 3rd. / Photo by Yonhap News

Meanwhile, the United Future Party, which launched the 'Kim Jong-in Emergency Committee System' centered on Kim Jong-in, the Emergency Committee Chairman, is reportedly also positively considering the basic income system.

Kim Hyun-ah, an emergency committee member of the United Future Party, appeared on CBS Radio's 'Kim Hyun-jung's News Show' on the 2nd and said, "Chairman Kim has been contemplating (the basic income system)," adding, "I think there is nothing that cannot be brought to the table."

The next day, Chairman Kim stated during a lecture at a meeting of first-term and proportional representation members of the United Future Party held at the National Assembly, "Maximizing material freedom is the most fundamental goal of politics," and asked, "What freedom does a hungry person have if they pass by a bakery but cannot buy bread because they have no money?" Although he did not directly mention basic income, this is interpreted as referring to the necessity of a universal welfare system implied by the basic income system.

As positive voices regarding basic income grow in both ruling and opposition parties, some argue that discussions on introducing a basic income system, whose policy effects have not been proven, are premature.

Hong Nam-ki, Minister of Economy and Finance, said during a Q&A session after a joint briefing held at the Government Seoul Office on the 1st, "Discussions on introducing basic income did not start this time; they have been raised continuously for several years," but added, "The government's position is that it is not yet appropriate to introduce a basic income system given our current conditions."

Minister Hong also opposed the policy of providing universal disaster basic income to all citizens in March. At that time, he cited reasons for opposing disaster basic income, including △ deterioration of fiscal soundness △ burden of rising bond interest rates △ low economic stimulus effect compared to the resources invested.

Deputy Prime Minister for Economy Hong Nam-ki is listening to questions from lawmakers at the full meeting of the Planning and Finance Committee held at the National Assembly in Yeouido, Seoul, on the afternoon of the 17th of last month. / Photo by Yonhap News

Given this situation, public opinion on the basic income system appears to be divided.

Office worker A (29) said, "After receiving the basic disaster income, I definitely increased my consumption activities. It seems to be a useful policy to help ordinary people during an economic crisis," showing a positive response.

Freelancer B (28) also said, "After COVID-19, I had a hard time as work stopped for a while, but thanks to disaster relief funds and various artist support policies, I was able to endure," emphasizing, "I don't think basic income dampens the will to work. For people with unstable income like self-employed or freelancers, it will rather be a support to run their business with a long-term perspective."

On the other hand, office worker C (31) expressed opposition, saying, "If the government spends the budget only on specific policies like basic income, it might be helpless when a real crisis hits," and added, "Thinking about the future, I believe welfare policies should be provided only to those in need rather than being lavishly distributed as a favor."

Experts suggest that political circles and the public need to reach a consensus to institutionalize discussions on basic income.

Kang Nam-hoon, professor of economics at Hanshin University, said in a phone interview with Asia Economy on the 3rd, "Through precedents such as basic income support funds, the public has already felt the utility of the basic income system firsthand," adding, "Now it is time for both ruling and opposition parties to step forward and work to establish a nationwide consensus."

He continued, "In the case of disaster relief funds, it was an emergency and a one-time policy, so funds could be raised by issuing government bonds, but to institutionalize basic income stably, revenue must be used," emphasizing, "Therefore, the budget must be secured through tax increases."

He added, "Tax increases can only be achieved with nationwide consensus," and said, "It is necessary for lawmakers, economic experts, and the public to come together to seriously publicize and discuss the issue of basic income."

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