청 "Reviewing 2nd Disaster Relief Fund, Preparing for All Possible Scenarios"

Planning Solutions While Monitoring COVID-19 Resurgence Trends... Presidential Special Committee "Considering Second Disaster Relief Payment"

[Asia Economy Reporter Ryu Jeong-min] The Blue House has put several response scenarios, including the payment of the '2nd Emergency Disaster Relief Fund,' on the table. They plan to devise solutions by monitoring the trend of the re-spread of the 'novel coronavirus infection (COVID-19).' While they will not rush to decide on the payment of the 2nd Emergency Disaster Relief Fund, they intend to keep the possibility open depending on the situation.

A senior Blue House official said in a phone call with Asia Economy on the 26th, "We will prepare all possible cases such as disaster relief funds and other financial support according to each (COVID-19) scenario while watching the spread trend."

The reason the Blue House does not rule out the payment of the 2nd disaster relief fund is that the COVID-19 re-spread situation is serious. For now, they are preparing responses based on the government's existing emergency economic measures, but if the situation worsens, extraordinary measures will be necessary.

The view of Cheongwadae from Namsan, Seoul on the 11th. Photo by Hyunmin Kim kimhyun81@

Earlier, President Moon Jae-in urged at the Cabinet meeting on the 25th, "Please reinforce the economic policy direction for the second half of the year, which has already been announced, to fit the changed situation," and added, "Although financial support through three supplementary budgets and large-scale financial assistance has been provided, please urgently check if there are any shortcomings."

The Blue House is expected to make a conclusion after comprehensively reviewing various variable factors. A senior Blue House official said, "We are reviewing (the 2nd Emergency Disaster Relief Fund)," but drew a line by saying, "It means we are preparing to do it whenever the necessary situation arises, but it does not mean a decision has been made."

The Blue House's concern is the national fiscal burden related to the payment of the 2nd disaster relief fund. As with the first payment of the disaster relief fund, the debate over ▲100% payment ▲selective payment is also a burden factor.

[Image source=Yonhap News]

In particular, the controversy is fueled as opinions diverge within the ruling party, including prominent presidential candidates such as Lee Nak-yeon, a member of the Democratic Party of Korea, and Lee Jae-myung, Governor of Gyeonggi Province. If the Blue House turns toward paying the 2nd disaster relief fund, it must decide on the timing, target, and method, each of which is a challenging task.

What is noteworthy is that President Moon attaches significance to the effect of the disaster relief fund payment. From the early stages of the COVID-19 crisis, President Moon has reflected on the past history where 'social crises' caused more difficulties for the vulnerable, deepening inequality, and has strived to prepare improvement measures. This means the government must work to prevent COVID-19 from hitting low-income groups harder.

In this regard, President Moon said, "With the government's active financial support, transfer income increased, and total income rose across all quintiles from the 1st to the 5th," adding, "Especially, the income of the lowest-income group, the 1st quintile, increased the most significantly, resulting in an improvement in distribution indicators."

This aligns with the analysis of the Presidential Committee on Income-Led Growth. On the 25th, the Income-Led Growth Special Committee stated regarding the government's COVID-19 response, "Due to large-scale emergency disaster relief funds, consumption coupons for low-income groups, and emergency employment stabilization support payments, the disposable income of all quintiles increased, alleviating income disparity," and added, "In preparation for the re-spread of COVID-19, the payment of the 2nd Emergency Disaster Relief Fund to strengthen support for low-income and middle-class groups should be considered."

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