Democratic Party Unable to Drop the 'Universal Payment' Card

"Discussion on Parallel Selective and Universal Basic Pillars"
Moon's Remark "Respond Boldly Within Fiscal Capacity" Gains Support
Prime Minister Chung and Deputy Prime Minister Hong Oppose
Future Party-Government Discussions Expected to Face Difficulties

Lee Nak-yeon, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 8th and delivering an opening remark. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Koo Chae-eun, Ryu Jeong-min] The Democratic Party officially announced on the 9th that it will discuss the scope of the 4th disaster relief fund payment based on a combination of selective and universal payments. This dismisses the 'selective payment theory' emerging from some within the party and the financial authorities.

It appears that President Moon Jae-in's order at the previous day's senior secretaries and aides meeting to "respond boldly within fiscal capacity" was interpreted as support for the existing method (selective + universal). However, Prime Minister Chung Sye-kyun still maintains a 'selective' stance, and Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is also cautious about 'populism,' so future discussions between the party and government are expected to be challenging.

On the 9th, Hong Ik-pyo, chairman of the Democratic Party's Policy Committee, told Asia Economy over the phone regarding President Moon's 'bold response' remark from the previous day, "We will continue discussions based on a method combining selective and universal payments," adding, "However, the gap between selective and universal payments may widen depending on the COVID-19 situation." Regarding concerns about fiscal burden raised by Deputy Prime Minister Hong, Hong said, "We judge that the finances can sufficiently handle it."

Summarizing statements from Democratic Party officials, the selective + universal combined method takes the form of 'first differentiated payment, then universal payment.' Priority payments are made to affected groups such as small business owners harmed by quarantine measures, followed by universal payments to the entire population once COVID-19 stabilizes. Within the party, this approach is seen as a measure that satisfies both the 'fiscal capacity' and 'adequate crisis overcoming plan' ordered by President Moon. Choi In-ho, senior spokesperson for the Democratic Party, said, "The president's remarks (yesterday) completely align with the various positions the party has expressed."

However, Prime Minister Chung revealed a stark difference in views by stating during the previous day's parliamentary question session, "Selective payment of disaster relief funds is correct." Regarding Prime Minister Chung's remarks, senior spokesperson Choi avoided a direct answer, saying, "Disaster relief funds can be paid simultaneously or separately depending on the COVID-19 situation."

Prime Minister Chung Sye-kyun attended the government questioning session on education, society, and culture held at the National Assembly on the 8th and is seen talking with Deputy Prime Minister for Social Affairs Yoo Eun-hye during the meeting. Photo by Yoon Dong-ju doso7@

Meanwhile, the official party-government consultation on the 4th disaster relief fund payment is scheduled after the Lunar New Year holidays. Until then, the party and government are expected to engage in unofficial behind-the-scenes coordination, but whether a 'beautiful agreement' will be reached remains uncertain.

Furthermore, it is unclear whether President Moon's remarks supported the existing party stance. President Moon ordered "(bold and) sufficient crisis overcoming measures" based on the premise of "within fiscal capacity." This can be read as a message blending the positions of both the party and financial authorities rather than siding with either. It may also imply caution to prevent the president's message from becoming a 'guideline' for party-government discussions.

In fact, the Blue House is also cautious about overinterpreting President Moon's praise of Deputy Prime Minister Hong's COVID-19 response. When President Moon mentioned "centered on the Deputy Prime Minister of Economy and Finance," some speculated that this emphasized selective payment in the disaster relief fund solution, but this is considered an overinterpretation. A senior Blue House official explained the president's remarks as "meaning to keep discussions open." The core of the president's message is not to urge party-government discussions with a predetermined conclusion but to gather wisdom through 'open discussions' on what is best.

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