Nationwide vs 80%... Ruling Party and Government Tug-of-War Over Disaster Relief Funds Again

Yun Hojung "The Party Has the Initiative"
Government and Blue House Say "No Change in Position"

[Asia Economy Reporter Jeon Jin-young] The ruling party and government negotiations over who should receive disaster relief funds are at risk of returning to square one. Initially, the ruling party and government agreed on selective payments to the bottom 80% income group, but as calls for "universal payments" persist within the ruling party, a review process has begun. A protracted tug-of-war with the government, which is opposed to universal payments, is expected.

Yoon Ho-jung, the floor leader of the Democratic Party of Korea, is attending the policy coordination meeting held at the National Assembly on the 8th and delivering opening remarks. Photo by Yoon Dong-ju doso7@

On the morning of the 8th, Yoon Ho-jung, the floor leader, made it clear at the policy coordination meeting held at the National Assembly that the party holds the initiative on this issue, saying, "The budget is set by the Ministry of Economy and Finance, and if the party leadership consults, lawmakers discuss and deliberate, that is democracy." He emphasized, "The second supplementary budget was made to alleviate the sense of alienation and deprivation felt by the majority of the people," adding, "We will resolve the mismatch between exports and domestic demand through the active role of fiscal policy." Even if the government continues to oppose universal payments, he intends to gather voices within the party and reflect them in policy. Park Wan-joo, chairman of the Policy Committee, also stressed, "We will carefully collect and properly discuss and reflect the opinions that emerged after the marathon discussion that lasted well over three hours on the 7th."

Song Young-gil, leader of the Democratic Party of Korea, is attending the Policy Lawmaker General Meeting held at the National Assembly on the 7th, reviewing materials with Supreme Council Member Kim Yong-min before the meeting begins. Photo by Yoon Dong-joo doso7@

The day before, the Democratic Party of Korea held a policy members' meeting to discuss the scope and method of the 5th disaster relief fund payment. At the meeting, the opinion that universal payments are necessary was dominant, and the Democratic Party decided to finalize its position at the Supreme Council meeting and reflect opinions during the supplementary budget review process in each standing committee. However, since universal payment is the consensus, it seems inevitable that the government’s plan for the "bottom 80% income group" will be revised.

Prime Minister Kim Boo-kyum is greeting before delivering the policy speech related to the second supplementary budget bill at the National Assembly on the 8th. Photo by Yoon Dong-joo doso7@

The government and the Blue House expressed reluctance at the Democratic Party’s sudden policy shift. On the same day, Prime Minister Kim Boo-kyum, who delivered the supplementary budget policy speech at the National Assembly, appeared on the radio and said, "The people who should be prioritized for help in this supplementary budget are ultimately those like self-employed and small business owners who have had to close their businesses over the past year," adding, "We must protect them first, and if we exclude them, there is actually little room left to use." He expressed concern about the party’s policy shift. Lee Cheol-hee, senior secretary for political affairs, also stated on the radio, "(The 80% payment) was an agreed matter between the party and government," and said, "Lawmakers with deliberation rights can express various opinions, and we listen to them, but for now, we intend to stick to the agreed plan," making it clear that there is no change in position.

As a compromise, there is also talk of maintaining selective payments but expanding the payment scope. During the process of adjusting fairness issues such as health insurance premiums for workplace and regional subscribers and dual-income couples, the payment scope could be adjusted to around 90%. Additional discussions on the timing of payments are also expected in connection with the spread of COVID-19.

Meanwhile, a separate controversy has been raised about whether it is appropriate to provide disaster relief funds aimed at stimulating consumption amid the explosive increase in new COVID-19 cases. The second supplementary budget includes budgets related to consumption activation, such as disaster relief funds, credit card cashback, and issuance of consumption coupons. It is reported that such concerns were also raised at the members' meeting the day before.

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