Universal or Selective... 2nd Disaster Relief Fund Sparks Conflict Between Ruling and Opposition Parties

Prime Minister Chung "The government can only be very hesitant"
Lee Nak-yeon "Disaster relief funds should be provided selectively"
Lee Jae-myung "Democratic Party's selective support claim causes public division"
Kim Hae-young & Jin Sung-jun "Selective payment needed... financial burden"
Kim Jong-in "Funds must be given to those who truly need them"

Deputy Prime Minister for Economy Hong Nam-ki is responding to questions at the plenary session of the National Assembly's Special Committee on Budget and Accounts on the 24th. Photo by Yonhap News

[Asia Economy Reporter Kim Suwan] As the novel coronavirus disease (COVID-19) surges, both ruling and opposition parties agree on providing a 'second disaster relief fund' but differ on the method of distribution. While the Democratic Party of Korea advocates for universal payment to all citizens, the United Future Party insists on selective payment prioritizing vulnerable groups. The government, for now, maintains a cautious stance.

On the 24th, during the plenary session of the National Assembly's Budget and Accounts Special Committee, Prime Minister Chung Sye-kyun and Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki expressed cautious views regarding the disbursement of the second disaster relief fund.

Prime Minister Chung said, "If disaster relief funds are to be provided, we have no choice but to rely entirely on government bonds," adding, "The government is very hesitant."

He emphasized, "Currently, the government's available resources are very limited," and stated, "We will only consider the measure (payment of the second disaster relief fund) if it is absolutely necessary. Until then, we maintain a very cautious position."

Deputy Prime Minister Hong also noted the difficulty in securing funds for the second disaster relief payment. He said, "There is not much budget left, and even if we restructure, there are limits," adding, "We believe that almost all projects that could undergo expenditure restructuring have already been addressed."

Responding to suggestions that expenditures could be cut and budgets reorganized, he countered, "Due to the nature of the projects, many expenses are consumption-based and cannot be significantly reduced, such as ceremonial events for public officials. Even with additional restructuring, it is difficult to gather substantial funds."

However, Deputy Prime Minister Hong added, "We will observe until the end of this week and make further judgments" when asked if the second disaster relief fund was unnecessary. Regarding the possibility of providing the relief fund, he advocated for selective payment, stating, "It is appropriate to provide tailored support to those in difficult circumstances."

Lee Nak-yeon, Democratic Party of Korea presidential candidate Photo by Yonhap News

Amid the government's cautious stance on the second disaster relief fund, ruling and opposition parties show differing opinions on the method of distribution.

On the 24th, Lee Nak-yeon, a candidate for the Democratic Party leadership, stated in a press release, "Differentiated support that helps those in difficulty more substantially is appropriate." He explained, "During the first payment this spring, universal payment was chosen due to concerns about administrative preparation and public acceptance," and added that selective support is preferable.

However, he said, "Now is the time to focus on overcoming COVID-19," and "This week will be a turning point in deciding whether to raise social distancing to level 3. I hope discussions on disaster relief funds will be postponed to focus fully on quarantine efforts this week."

Park Jumin, another candidate for party leadership, also stated on the 25th, "In principle, the second disaster relief fund should be provided to all citizens," adding, "It is clear that those suffering from COVID-19 difficulties are not only in the lower income brackets. Providing to all citizens is reasonable."

Regarding the timing of payment, Park said, "If the spread of COVID-19 subsides, it is appropriate to provide the funds before Chuseok."

Seol Hoon, a Supreme Council member, said in an interview with CBS Radio's 'Kim Hyun-jung's News Show' on the 24th, "Ultimately, the first payment was also universal. The administrative process for selection incurs costs and leads to unfair outcomes," and argued, "It is more reasonable to provide to all citizens," advocating universal payment.

Voices for selective payment are also strong. To reduce fiscal burden, some suggest prioritizing payments to low-income and vulnerable groups rather than universal payment.

Kim Hae-young, a Supreme Council member, said at the council meeting that day, "From the second disaster relief fund onward, payments should focus on vulnerable groups who are suffering more due to COVID-19," emphasizing, "As COVID-19 continues, government support such as disaster relief funds may continue, so it is necessary to consider the country's fiscal capacity in the long term."

Kim added, "Such discussions are important to gain understanding and consent from community members who do not receive disaster relief funds," and said, "Politics is about effectively allocating social resources and mediating conflicts in that process. Now is a time when politics is desperately needed."

Gyeonggi Province Governor Lee Jae-myung argued for universal payment in a post titled 'Selective Disaster Relief Fund Payment is Unreasonable Discrimination. Why Suddenly Selective Welfare When Advocating Universal Welfare?' on his Facebook on the 24th.

He claimed, "This argument for selective disaster relief fund payment misunderstands the nature of the relief fund, violates the constitutional principle of equality, causes national division and conflict, and abandons the Democratic Party's universal welfare line to align with the conservative opposition's selective welfare approach."

Kim Jong-in, Emergency Response Committee Chairman of the United Future Party, is speaking at the Emergency Response Committee meeting held at the National Assembly on the 24th. Photo by Yonhap News

The United Future Party holds a position favoring selective payment. Kim Jong-in, the party's emergency committee chairman, said at the COVID-19 emergency countermeasure meeting on the 23rd, "Since COVID-19 is newly spreading, the government will assess the economic impact, and only after that will the recipients be determined," emphasizing, "Payments should be made to those who truly need it."

Spokesperson Kim Eun-hye urged in a briefing, "There must be people in urgent need, so I don't understand why the government is not speeding up disaster relief funds or supplementary budgets," and called, "Please prioritize those whose livelihoods are affected, such as self-employed and small business owners."

The Justice Party called for the swift payment of the second disaster relief fund. Justice Party leader Shim Sang-jung said at the executive committee meeting held at the National Assembly in Yeouido, Seoul, on the 24th, "It's a race against time. The sooner the second disaster relief fund is paid, the better."

Regarding the second emergency disaster relief fund, Shim said, "The sooner the second disaster relief fund is paid, the better. It's a race against time," and added, "Discussions should start at the end of August's budget settlement session and be completed before Chuseok."

Shim urged, "There is no time for exhausting debates like selective payment to the lower 50%. Considering the administrative cost waste, unnecessary time consumption, income inversion at the 50% boundary, stigma effects, and other side effects of selective payment, decide on a plan to promptly provide the funds universally to all citizens."

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