[Weekly Review] Government Unveils 6 Trillion Won 'November 19th Jeonse Measures'

Minister of Land, Infrastructure and Transport Kim Hyun-mi is announcing support measures for housing stability for low-income and middle-class citizens at the Government Seoul Office in Jongno-gu on the 19th. Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy Reporter Joo Sang-don] The government will pour about 6 trillion won over two years into the '11.19 Jeonse Measures' introduced to stabilize housing for low-income households. It is expected that an annual budget of 3 trillion won will be invested not only in vacancy renovation or remodeling but also in new construction purchase agreements. Accordingly, the public housing-related budget of the Housing and Urban Fund, which usually spends about 18 to 19 trillion won annually, is expected to increase to 22 trillion won.

The source of funds for the 'Support Plan for Housing Stability for Low-income and Middle-class Households' announced by the government the day before is the Housing and Urban Fund, which had about 39 trillion won in surplus funds as of the end of October.

The core of the measures is the 'supply of 114,000 rental housing units over two years,' and the government estimates that about 6 trillion won in total, or 3 trillion won annually, will be required for related projects.

Accordingly, the cost the government procures from the Housing and Urban Fund for public housing-related projects is expected to increase from the usual scale of 18 to 19 trillion won to up to 22 trillion won next year.

◆ One-year temporary allowance for non-landing international sightseeing flights... $600 duty-free = To support the aviation industry struggling due to the prolonged suspension of international flights, the government has decided to promote the introduction of 'non-landing international sightseeing flights.' Passengers on these flights will be granted the same duty-free benefits as regular travelers.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, chaired the '20th Emergency Economic Central Countermeasures Headquarters (Economic Central Headquarters) Meeting and the 5th Korean New Deal Ministerial Meeting' at the Government Seoul Office on the 19th, where he announced the 'Non-landing International Sightseeing Flight Promotion Plan' containing these details.

Users of non-landing international sightseeing flights will be granted the same traveler duty-free benefits as regular travelers, including a basic $600 allowance, one bottle of alcohol (1ℓ, within $400), 200 cigarettes, and 60ml of perfume. The government will also implement measures to strengthen quarantine and prevention, such as prior online ticketing, group check-in, social distancing arrangements at boarding and disembarking gates, and restrictions on limousine bus use.

During the meeting, plans to revitalize the 'non-face-to-face economy' were also discussed. First, the government decided to invest 1.6 trillion won next year in eight promising sectors leading the non-face-to-face economy: finance, medical care, education and vocational training, work, small business owners, distribution and logistics, digital content, and administration.

◆ COVID-19 further deepened income inequality... 'Bottom 20%' income down 1.1%, 'Top 20%' up 2.9% = The impact of COVID-19 has further exacerbated income inequality. The labor income of the bottom 20% (first quintile) decreased more than that of the top 20% (fifth quintile), while the increase in transfer income due to government support was greater for the fifth quintile. As a result, the representative distribution indicator, the equivalized disposable income quintile ratio, worsened by 0.22 points compared to a year ago.

On the 19th, Statistics Korea announced the '2020 3rd Quarter Household Income and Expenditure Survey Results' containing these details.

According to the data, the average monthly household income in the third quarter was 5,305,000 won, an increase of 1.6% compared to the same quarter last year. Although labor income and business income decreased by 1.1% and 1.0%, respectively, public transfer income, which is income provided free of charge by the central or local governments, increased by 29.5%, resulting in a 17.1% increase in total transfer income.

The equivalized disposable income quintile ratio in the third quarter was 4.88 times, up 0.22 points from 4.66 times in the same period last year. It widened by 0.65 points compared to the previous quarter (4.23 times). Income inequality is worsening.

◆ Kimhae New Airport effectively heading toward cancellation = The Kimhae New Airport Verification Committee under the Prime Minister's Office announced on the 17th that "fundamental review is needed for the promotion of Kimhae New Airport."

At a press conference on the verification results of the 'Kimhae New Airport Basic Plan' held at the Government Seoul Office in the afternoon, the committee stated, "The Kimhae New Airport Basic Plan requires significant supplementation in safety, facility operation and demand, environment, and noise areas, and it is difficult to respond to future changes such as expansion."

The committee concluded, "The Kimhae New Airport plan requires significant supplementation and is difficult to respond to future changes such as expansion. Furthermore, considering the interpretation that the project needs to proceed on the premise of removing mountains exceeding obstacle limitation surfaces if the consent of local governments is not confirmed, fundamental review is necessary for promoting Kimhae New Airport as the gateway airport of the southeastern region."

This announcement strengthens the view that it will be difficult for the government to stick to the Kimhae New Airport plan. Especially since Busan strongly advocates for the construction of Gadeokdo New Airport instead of Kimhae New Airport, it is expected that Kimhae New Airport will effectively be canceled, and support will shift to Gadeokdo New Airport.

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