Hong Nam-ki: "Basic Income is a Long-term Task to Consider... Even Giving 300,000 Won per Person Requires 200 Trillion Won"

Government Questioning at the National Assembly on the 23rd

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, reiterated his opposition to the introduction of a basic income system on the 23rd.

On the afternoon of the same day, during the government questioning session on economic issues held at the National Assembly in Yeouido, Seoul, Hong responded to a question from Assemblyman Cho Jung-hoon of the Transition Era party asking for the reasons behind his opposition to the introduction of basic income by saying, "It is a task to be considered in the long term." He explained, "Personally, I think basic income is a task to be considered over the long term. Even if basic income of 300,000 won per person is given to all citizens, it would require 200 trillion won."

He continued, "The scale of employment welfare is said to be 180 trillion won, but there needs to be a reorganization of that," and pointed out, "There is no consensus on whether to keep the 180 trillion won welfare targeted at those in need as it is, or to stop it all and start over." He also said, "From the perspective of managing finances, I think it is more effective to give 600,000 won, 1 million won, or 2 million won to truly needy groups rather than giving 300,000 or 400,000 won to all citizens."

Hong added, "Several countries around the world have tried the basic income system. However, it has been evaluated that it is not yet institutionally established, so no country has officially adopted it yet," and said, "We could be the first country, but it is necessary to consider the side effects and problems I mentioned, and the fact that no country has officially adopted it yet."

However, he did not completely rule out the possibility of discussion. He explained, "In the current situation where overcoming the COVID-19 crisis and economic recovery are more urgent, I think the discussion on basic income should be a lower priority," and added, "If there is discussion in the National Assembly, we will participate together."

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