Moon to Consider 'Corona Comfort Support Fund'... Timing and Scale Uncertain

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] President Moon Jae-in mentioned the 'COVID-19 consolation support fund' during a meeting with party leadership. Although the timing and scale have not yet been decided, the Blue House's position is that it is likely to take a form close to universal payment.

Kang Min-seok, spokesperson for the Blue House, stated in a briefing on the 19th, "President Moon said that when the situation allows us to move beyond COVID-19, the payment of a consolation support fund and a morale-boosting support fund for the people could be considered."

On that day, when party leaders including Lee Nak-yeon, leader of the Democratic Party of Korea, and Kim Tae-nyeon, floor leader, mentioned a consumption stimulus support fund to President Moon, he responded positively to the consideration of the consolation support fund, saying, "Let's encourage the whole nation to cheer up together, comforting the people and simultaneously stimulating consumption."

Accordingly, attention is focused on the timing and scale of the consolation support fund payment. The Blue House maintains that since it is still at the discussion stage, nothing has been concretely decided. Some have pointed out that this could be the '5th disaster support fund' following the 4th disaster support fund, but since President Moon added the condition "when the situation allows us to move beyond COVID-19," it is interpreted to mean that specific discussions about the timing can only take place once the COVID-19 situation enters a stabilization phase.

The scale and target of the payment have not yet been decided, but it is expected to be close to a universal support form. A senior Blue House official said, "The president even used the expression 'cheer up,'" adding, "You can think of the support fund provided last year. While it aims to stimulate consumption, it strongly serves to comfort the people and boost their morale." The first disaster support fund provided to all citizens last year amounted to 1 million KRW for a four-person household, with a total of 14 trillion KRW spent.

However, there are also research results indicating that the effect of the first disaster support fund, which was distributed universally, was limited. The Korea Development Institute (KDI) stated in its report titled 'Effectiveness and Implications of the First Emergency Disaster Support Fund Policy,' released in December last year, that the increase in sales at marts and other stores due to the first disaster support fund was only about 4 trillion KRW.

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