Ruling Party "March Payment" vs Opposition "Election Use" 4th Disaster Relief Fund Clash Between Parties

Ruling Party: "Expand scale for rapid support from March" vs Opposition: "Election stunt... Restructure from this year's main budget"

Photo by Yonhap News

[Asia Economy Reporter Kim Young-eun] As the government and ruling party announced plans to provide the 4th disaster relief fund next month with a significantly expanded scale, the People Power Party strongly criticized it as an 'election bribe' aimed at the April by-elections.

On the 15th, the Democratic Party of Korea announced plans to significantly expand the scale of the 4th disaster relief fund for industries affected by COVID-19 and to start disbursing it from late March.

Kim Tae-nyeon, the floor leader of the Democratic Party, said at the Supreme Council meeting held that day, "We will prepare the supplementary budget for the 4th disaster relief fund in February and push forward with the National Assembly's approval in March so that the relief fund can be distributed from late March with a sense of urgency."

He added, "We will promptly provide customized disaster relief funds to self-employed and small business owners affected by the third wave of the pandemic," and "We will mobilize all available policy tools to overcome the employment freeze in the first quarter."

Lee Nak-yeon, leader of the Democratic Party of Korea, is presiding over the Supreme Council meeting at the National Assembly in Yeouido, Seoul, on the morning of the 15th. Photo by Yonhap News

Additionally, the Democratic Party expressed its intention to significantly increase both the scale of support and the budget allocation. Lee Nak-yeon, the leader of the Democratic Party, emphasized that "the disaster relief fund should be distributed more broadly and generously than previous support funds," and "we will repeatedly urge the government to minimize blind spots in the system and to provide stronger support as the pain of vulnerable groups has increased."

Floor leader Kim said, "We agreed on providing broader and more substantial support than before by minimizing blind spots." Kim Jong-min, a Supreme Council member, also stated, "The scale of support should not be limited to consolation money as in the 2nd and 3rd rounds," and "we must strive to provide compensation equivalent to the damage suffered." The party’s spokesperson Shin Young-dae emphasized, "The previous support amounts of around 1 to 3 million won for industries affected by gathering bans and business suspensions are insufficient and support should be more substantial."

The Democratic Party is reportedly considering increasing the support amount for small business owners beyond the current maximum of 3 million won and relaxing the eligibility criteria for support, which are currently set at annual sales of 400 million won (general industries) and fewer than 5 employees (service industries). According to this, compared to the 3rd disaster relief fund, which selectively distributed 9.3 trillion won, the scale of the 4th disaster relief fund is expected to exceed 10 trillion won.

Joo Ho-young, floor leader of the People Power Party, is speaking at the Emergency Response Committee meeting held at the National Assembly in Yeouido, Seoul, on the morning of the 15th. Photo by Yonhap News

In response, the People Power Party criticized it as election populism ahead of the April by-elections. Joo Ho-young, floor leader of the People Power Party, said at the emergency committee meeting that day, "It seems the Democratic Party is rushing to distribute the 4th disaster relief fund before even finishing the 3rd," and pointed out, "The urgent task is to precisely legislate the Loss Compensation Act before distributing the 4th disaster relief fund."

He added, "It is most important to accurately assess and compensate the losses suffered by citizens due to government administrative orders. If the government arbitrarily sets criteria for distribution, it will cause further dissatisfaction and problems," he criticized.

Choi Hyung-doo, the party’s floor spokesperson, also said in a statement that day, "The government and ruling party are planning another supplementary budget ahead of the April by-elections despite not properly using the already prepared supplementary budget," and "They should stop the trick of borrowing recklessly and shifting the burden to the people starting next year, and instead reorganize this year’s main budget first," he pointed out.

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