Lee Jae-myung: "Disaster Relief Fund More Effective Than 10 Trillion Support for Large Corporations"

Lee Jae-myung, Governor of Gyeonggi Province / Photo by Yonhap News

[Asia Economy Intern Reporter Kang Juhee] Lee Jae-myung, Governor of Gyeonggi Province, once again emphasized the government's second round of additional emergency disaster relief payments on the 8th.

In an interview with CBS Radio's 'Kim Hyun-jung's News Show' on the morning of the 9th, Governor Lee stated, "The emergency disaster relief payments have gradually revived the economy. However, this effect is unlikely to last beyond three months," adding, "Around August, the economy will rapidly cool down again. We need to prepare countermeasures."

He continued, "In terms of amount, Japan provided about 1.3 million won per person. Our country only provided about 270,000 to 280,000 won per person," and explained, "Usually, to revive the economy, large corporations receive support of 5 to 10 trillion won. This time, 10 trillion won was provided to the public through disaster relief payments, and small-scale small business owners and small and medium enterprises have been revitalized. The effect on the economy is much greater."

He added, "There is a strong perception that disaster relief payments are a waste of public funds, but this policy is not about helping the poor. It is a policy to boost demand and revive the economy."

Regarding the method of providing disaster relief payments based on the head of household, he argued, "People usually talk about administrative procedure costs, but the constitutional principle of equality should be considered more," stating, "In reality, the head of household is usually male, which goes against gender equality, and family conflicts are increasingly occurring. Therefore, I believe it is better to provide payments per individual rather than per household. Differentiating the amount of household allowances also violates the principle of equality."

On restrictions regarding where disaster relief payments can be used, he emphasized, "There are many demands to expand usage nationwide and allow use at large retail stores, but I believe that is not appropriate," adding, "Providing payments in the form of non-cash, expiring local currency is an unchangeable principle."

He further explained, "If payments are made in cash, people tend to save it, so fundamental economic problems cannot be solved. Restricting usage locations is also intended to disperse concentrated demand and address economic issues."

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