From the Start of the 2nd Supplementary Budget Review, Friction Arises... Conflict Over 'National Disaster Relief Fund'

National Assembly Budget Committee to Hold Comprehensive Supplementary Budget Policy Inquiry for Two Days from the 14th
Ruling Party Decides 'All Citizens' as Recipients of Disaster Relief Payments... Hong Nam-ki Maintains "Disagreement" Stance
Kim Yong-min: "There Are Voices Within the Party Calling for Deputy Prime Minister Hong's Dismissal"
Baek Hye-ryun: "If Cashback Budget Is Removed, 220,000 Won Per Person Is Possible"

[Asia Economy Reporter Oh Ju-yeon] The National Assembly has officially begun reviewing the second supplementary budget (supplementary budget) worth 33 trillion won. Although the ruling and opposition parties have agreed to pass the supplementary budget by the 23rd, the review process is expected to face difficulties as disagreements between the ruling party and the government persist over the recipients of the disaster relief funds.

Song Young-gil, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 14th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

On the 14th, the National Assembly's Special Committee on Budget and Accounts held a plenary meeting in the afternoon, where Prime Minister Kim Boo-kyum, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, and ministers of relevant departments attended to conduct comprehensive policy questioning over two days. The ruling and opposition parties have agreed to pass the supplementary budget in the July National Assembly after subcommittee reviews on the 20th and 21st of this month.

Song Young-gil, leader of the Democratic Party, said at the morning Supreme Council meeting, "We will fully accept and negotiate the opposition party's opinion to provide strong support to small business owners," adding, "We will ensure that the national disaster relief funds are provided without discrimination so that they can complement each other."

The Democratic Party decided on the party line the day before to provide disaster relief funds included in this supplementary budget to the entire population. Although the agreement on nationwide disaster relief funds reached between the ruling and opposition party leaders on the 12th appears to be overturned due to opposition within the opposition party, the ruling party believes consensus has been formed and is pushing ahead with the nationwide disaster relief funds as planned.

Yoon Ho-jung, floor leader of the Democratic Party, also said on the same day, "I hope Representative Lee Jun-seok shows leadership by actively participating in the supplementary budget review to overcome the crisis with the people rather than getting caught up in unnecessary controversies." This is interpreted as urging not to be swayed by internal opposition and to swiftly proceed with the nationwide disaster relief fund plan agreed upon by the party leaders.

However, the government still insists on limiting the disaster relief fund recipients to the "bottom 80% income bracket," making it difficult to avoid conflicts between the ruling party and the government. In particular, there are even discussions within the ruling party about "dismissing Hong Nam-ki," making the supplementary budget review process even more uncertain. On the same day, Kim Yong-min, a Supreme Council member of the Democratic Party, appeared on the radio and said, "Voices are emerging within the party suggesting that a dismissal proposal should be made," effectively putting pressure on Deputy Prime Minister Hong. Although the opposition party is calling to prioritize support for small business owners and self-employed individuals by overturning the nationwide disaster relief fund agreement, the biggest variable in this supplementary budget is said to be Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki rather than the opposition party.

Meanwhile, Deputy Prime Minister Hong clearly stated his opposition to nationwide disaster relief funds during the full meeting of the Planning and Finance Committee the day before. Regarding the reduction of the budget for the Win-Win Consumption Support Fund (card cashback), he firmly said, "There is still no change in the need for the card cashback." Since the ruling party has set nationwide distribution as its party line, it seems likely that conflicts will erupt again without any retreat.

Supreme Council member Baek Hye-ryun said on the radio that day, "The effectiveness of nationwide disaster relief fund payments has already been verified," adding, "If the cashback budget is eliminated and adjusted to disaster relief funds, it is possible to provide about 220,000 won per person without additional budget." Regarding the timing of the payment, she said, "It might be as early as September or October," and added, "I think the ruling and opposition parties have reached a consensus on that point."

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