Kim Du-kwan Proposes Introduction of 20 Million Won Basic Asset System for Newborns

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Kim Du-gwan, a member of the Democratic Party of Korea, proposed the introduction of the so-called 'Basic Asset System,' which provides tens of millions of won per newborn.

On the 5th, at a National Assembly forum hosted under the theme "Why Basic Assets in an Era of Polarization," Rep. Kim emphasized the need to introduce basic assets as a way to reestablish the circulation structure of wealth, stating, "As capitalism has advanced, assets have begun to generate more assets." Instead of the basic income system, which has been criticized for being less efficient than the current welfare system, the basic asset system aims to provide a lump sum to young people about to enter society, thereby creating a foundation for independence.

Specifically, Rep. Kim's office explained that the system is being designed with a basic framework that provides an account with 20 million won under the name of each newborn, applies a certain interest rate, and allows withdrawal only after reaching adulthood.

Rep. Kim plans to pursue legislation through the introduction of a bill tentatively titled the "Basic Asset Formation and Support Act" once the policy plan is further detailed.

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