'Debate on Income Theory'... The Presidential Election 'Issue Race' Has Already Begun

[Asia Economy Reporter Park Cheol-eung] Discussions on the introduction of basic income are erupting in a "battle of a hundred schools of thought" style within the political sphere, centered around presidential candidates. There is broad agreement on the motto of providing direct support through fiscal measures. However, opinions diverge on how to secure funding, leading to various forms of "income theories." The main agenda competition for the 2022 presidential election has effectively already begun.

Lee Nak-yeon, a member of the Democratic Party of Korea who maintains the top spot in presidential polls, expressed his position by saying, "I understand the purpose of the basic income system and hope discussions on securing funding will take place." Although he has initiated the conversation, he remains cautious for now.

Gyeonggi Province Governor Lee Jae-myung has stepped to the forefront, advocating for the highest level of basic income introduction. His ultimate goal is to provide up to 500,000 KRW per person per month to all citizens, aiming to raise this amount gradually over the medium to long term while gaining public consent step by step. He proposes starting with 200,000 KRW annually, then reaching 500,000 KRW as a short-term target, followed by assessing the economic effects and public approval. Initially, this can begin by adjusting existing budgets, but future tax increases are assumed. He emphasizes economic effects through demand stimulation rather than merely welfare.

Governor Lee recently stated on Facebook, "This is an economic policy that guarantees virtuous economic cycles and sustainable economic growth by supplementing demand capacity through fiscal adjustment functions to address structural economic stagnation caused by demand-supply imbalances." He pointed out that Gyeonggi Province’s disaster basic income paid in local currency has actually verified this effect.

He added, "Basic income can start at a level possible without replacing welfare or increasing taxes from current resources, then gradually secure additional funds annually and increase the amount." He envisions introducing new taxes such as land ownership tax, robot tax, data tax, and carbon tax to be used for basic income.

Kim Doo-kwan, a leading figure in the Yeongnam region within the Democratic Party, also raised his voice, saying, "Let's discuss funding plans including Governor Lee’s proposed land ownership tax, public data distribution methods, separate basic income tax on income tax, fiscal adjustments, and even the Future United Party’s proposals."

Seoul Mayor Park Won-soon stands at the opposite end regarding methodology. He argues that since securing basic income funding is difficult, the focus should be on expanding social safety nets such as nationwide employment insurance. On the 11th, appearing on CBS Radio, Mayor Park said, "Even if we give 100,000 KRW to all citizens, it would cost 62 trillion KRW," adding, "Currently, the defense budget is 50 trillion KRW, and excluding national pension and health insurance, all welfare budgets amount to 50 trillion KRW. We cannot just eliminate defense or social welfare. Where would that money come from?"

He emphasized empirical analysis. Mayor Park said, "Among 27 million workers in our country, 51%, or 14 million people, are currently not covered by employment insurance," and added, "There has never been a more urgent need to expand the employment safety net, so that should be done first." Former Democratic Party member Kim Boo-kyum similarly regards expanding employment insurance as a more urgent task than basic income. There is a cautious view that basic income discussions could inadvertently lead to the dismantling of existing welfare systems. Meanwhile, Democratic Party member Lee Kwang-jae proposes "participation income," a method of paying a portion of the added value from the data economy to citizens who produce data such as medical information.

In the opposition camp, former Seoul Mayor Oh Se-hoon presented the most concrete plan. He advocates introducing "Anshim Income," which sets a baseline income level and selectively pays only those who fall short of it. This approach is relatively directly linked to economic effects such as demand stimulation and is possible without tax increases. On the 11th, Kim Jong-in, emergency committee chairman of the Future United Party, reportedly expressed interest in the "Anshim Income" system during a meeting with former Mayor Oh and other out-of-office party branch chiefs.

Traditionally, the conservative opposition party favors a small government and is negative toward tax increases, making former Mayor Oh’s selective payment plan likely to emerge as the most viable option. Ahn Cheol-soo, leader of the People’s Party, is also researching a "Korean-style basic income" focused on vulnerable groups rather than universal basic income.

However, independent lawmaker Hong Joon-pyo has expressed a negative stance on basic income, calling it a "socialist-style rationing system."

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