Disaster Relief Funds Whose Recipients Are Unknown

Payment to Bottom 80% Income Group... Amount Criteria Unclear
Ruling Party Also Advocates 'Expanded Payments for Dual-Income Couples'

[Asia Economy Reporter Jang Sehee] As the government prepares a supplementary budget (추경) worth 33 trillion won, controversy is expected to grow over the beneficiaries of the disaster relief funds. This is due to the unclear amount criteria for the bottom 80% income group and considerations to expand payments to dual-income couples, among others.

According to the Ministry of Economy and Finance on the 4th, starting mid-August, households in the bottom 80% income bracket will receive 250,000 won per person. For a family of four, this amounts to 1 million won. Although the baseline of the bottom 80% income group has been set, the specific amount will be determined through a task force (TF).

The bottom 80% income group will be selected based on health insurance premiums. However, since the reference points differ between workplace subscribers and regional subscribers, issues of fairness may arise. Currently, for regional subscribers such as self-employed individuals, the 2019 income is used as the basis for calculating health insurance premiums. Similarly, workplace subscribers with fewer than 100 employees also use 2019 income as the standard. However, workplace subscribers with 100 or more employees use 2020 income as the basis.

The cutoff criteria for high-net-worth individuals have not yet been established. However, during the first round of disaster relief payments last year, even if one was in the bottom 70% income group, those with a property tax base exceeding 900 million won (approximately 1.5 billion won in official property price) or financial income exceeding 20 million won annually were excluded. It is highly likely that a similar method will be used this time.

Regarding this, a Ministry of Health and Welfare official stated, "We are currently reviewing the establishment and application of criteria for high-net-worth individuals who meet certain conditions."

Additionally, as the ruling party has requested the Ministry of Economy and Finance to consider payment plans for dual-income households with an annual income exceeding 100 million won, the number of beneficiaries is expected to increase further.

Regarding the cashback program, the government has yet to set restrictions on where the funds can be used. A government official said, "Restrictions on usage are a highly contentious issue, so policy considerations are necessary," adding, "We plan to review this through the TF and announce the results later."

The government plans to clearly specify usage categories and notify the public by July. University tuition fees will be recognized as additional consumption, but expenditures at department stores, large supermarkets, online shopping malls, luxury brand stores, entertainment establishments, and vehicle purchases will be excluded.

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