"Basic Income and Universal Employment Insurance Are 'Wartime Administration'; A New Social Security Framework Is Needed"

Proposal for Social Insurance Supplementary Provision 'National Basic Security System'
Transition to One-Person-One-Pension System for National Pension and Korean-Style 'Parent Insurance'
"Demand for Social Security System Transformation in the Post-COVID Era"

Joo Ho-young, Acting Leader of the People Power Party, is attending the Emergency Response Committee meeting held at the National Assembly on the 21st and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Hyunju Lee] In the post-COVID era, the introduction of basic income and universal employment insurance, which have been circulating in the political sphere, have been criticized as "wartime administration" due to discrepancies in funding sources and implementation timing. To overcome polarization caused by the COVID-19 aftermath and create a new social security framework, the introduction of a "National Basic Security System" and the transition of the National Pension to a one-person-one-pension system have been proposed as alternatives.

Professor Kim Yongha of the Department of IT Financial Management at Soonchunhyang University’s Global Business School stated on the 21st at the "Post-Corona 2021, Crisis and Leap" seminar series co-hosted by the People Power Party Policy Committee and Yeouido Research Institute, "The justice pursued by social security is not extreme equality of outcomes or passive equality of opportunity, but equality of conditions."

On the same day, Professor Kim argued, "Basic income is mentioned as an alternative to job issues, but it is practically impossible to introduce from the perspective of funding." Advocates of basic income propose a phased expansion plan with a final goal of a monthly basic income of 300,000 won. However, to provide 300,000 won monthly basic income to all citizens, an annual fund of 186.588 trillion won is required, which is considered practically difficult given the current social security expenditure in Korea. Regarding universal employment insurance, he pointed out, "Even if employment insurance is applied from December, to receive benefits, one must pay premiums for more than nine months. For artists who currently have no jobs, the timing of implementation is inappropriate."

To resolve the polarization that has widened due to the prolonged COVID-19 pandemic, Professor Kim emphasized, "It is important to solve polarization problems that were difficult to address with existing social security systems." As practical measures, he suggested the introduction of the National Basic Security System and the transition of the National Pension to a one-person-one-pension system.

The National Basic Security System aims to supplement the gap for citizens who are not protected or not adequately protected by social insurance under the current social security system structure, which is maintained as much as possible, by providing the shortfall relative to the nationally set "National Basic Security Line." He added, "We must enable all possible citizens to receive the National Pension under a one-person-one-pension system. Currently, the National Pension triggers intergenerational transfer inequities in single-earner households and issues regarding women's pension rights." Furthermore, he mentioned, "There is also consideration of applying the basic pension, which currently pays a fixed amount of 300,000 won monthly to 70% of all elderly, in a way that pays higher pensions to elderly with lower income levels and less to relatively better-off elderly."

To overcome the failed childcare and parenting support measures so far, Professor Kim proposed the introduction of a Korean-style "Parent Insurance." He said, "By establishing a sixth social insurance, a separate insurance system should be created to collect parent insurance premiums from employers, workers, and the state, and the leave and vacation systems for non-regular workers and self-employed should be reorganized to operate in a way that provides practical help to workers during childcare periods." He also proposed a plan to integrate and manage low birthrate-related benefits through the Parent Insurance Fund.

At the seminar, Joo Ho-young, acting leader and floor leader of the People Power Party, said, "During the four years of the Moon Jae-in administration, reforms of various social security systems such as pensions and health insurance were neglected, and only populist handout policies were rushed, which ultimately rapidly weakened national finances." He added, "It is now necessary to boldly review the entire social security system at hand and prepare a predictable and well-prepared social security system through system integration and supplementation."

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