The Core of Universal Welfare 'Basic Income' Heats Up Next Year's Presidential Election Scene

Regardless of assets, income, or employment
600 million KRW annually, 500,000 KRW monthly
Ruling and opposition parties clash over funding

Universal income redistribution
Debate over solutions to polarization continues

[Asia Economy Reporter Oh Ju-yeon] At the core of the ‘Lee Jae-myung-style New Deal,’ which promises to create a universal welfare state through strong economic revival policies, lies the concept of ‘basic income.’ Despite ongoing attacks both inside and outside the party regarding its feasibility and funding methods, presidential candidates from both ruling and opposition parties are competitively proposing a ‘Korean-style basic income.’ This is why it is drawing attention as an agenda that will heat up the presidential race.

Lee Jae-myung, Governor of Gyeonggi Province, who officially declared his candidacy for the presidential election, visited the National Seoul Memorial Cemetery in Dongjak-gu, Seoul, on the 1st. After paying respects at the Memorial Tower, he left a guestbook entry. Photo by the National Assembly Press Photographers Group

According to the presidential candidacy declaration announced by Governor Lee on the 1st, basic income is a core economic and welfare policy representing the spirit of the times. The main point is to provide every citizen with 500,000 won per month, totaling 6 million won annually, regardless of property, income, or employment status. However, there is controversy over how to secure the funding, which exceeds 300 trillion won annually, and the possibility of addressing inequality.

Song Young-gil, leader of the Democratic Party, recently said in an interview with Asia Economy that basic income would continue to be controversial due to funding issues when asked if it could become a Democratic Party pledge. Criticism from other candidates is also fierce. There are critiques ranging from “If there is no plan for funding, it is a fantasy” (former leader Lee Nak-yeon) to harsh reviews like “It is half-baked” (former Prime Minister Chung Sye-kyun).

In particular, former Prime Minister Chung appeared on KBS radio that day and reiterated criticism, saying, “Basic income is not cost-effective.” He added, “There is no funding plan, and it does little to correct income inequality.”

However, Governor Lee proposed a concrete plan to secure 25 trillion won annually through budget savings, paying 500,000 won per person split into the first and second halves of the year, and, in the long term, providing a monthly 500,000 won basic living allowance based on public consent. The funding will be increased by introducing basic income purpose taxes such as carbon tax, data tax, robot tax, and unearned income land tax. He emphasized that since the monthly 500,000 won basic income payment is a long-term goal spanning 10 to 20 years or more, the required 300 trillion won budget should not be compared to the current national budget (558 trillion won).

There is also debate over whether income redistribution targeting the entire population is a way to solve polarization. The detailed plans of former leader Lee Nak-yeon, who proposed a new welfare state, and former Prime Minister Chung’s Future Seed Account are closer to tailored welfare.

Meanwhile, the day before, Min Hyung-bae, a lawmaker from the Lee Jae-myung faction, along with 32 lawmakers including Kim Nam-guk, Baek Hye-ryun, and Hong Jeong-min, proposed a bill titled ‘Act on Public Deliberation of the Basic Income System.’ This indicates an intention to publicize and verify the basic income agenda, and as the presidential election clock speeds up, discussions on basic income are expected to become more active.

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