Lee Jae-myung: "Third Disaster Basic Income to Be Paid to All Gyeonggi Residents" Ruling Party: "Local Governments' Discretion, but Discussion and Debate Needed" (Comprehensive)

[Asia Economy Reporter Koo Chae-eun] Amid controversy over the government's differentiated distribution of the 5th disaster relief fund, Gyeonggi Province Governor Lee Jae-myung announced that he would provide 250,000 KRW per person as disaster basic income to all Gyeonggi residents, sparking expected debate. Previously, the government decided to selectively distribute disaster relief funds to the bottom 88% income bracket, but Governor Lee has insisted on the necessity of universal distribution within Gyeonggi Province, causing friction.

On the morning of the 13th, Governor Lee held an online press conference, stating, "The government's 5th disaster relief fund is expected to be a blessing for the lives of citizens devastated by COVID-19," and added, "Considering the justification and economic effects of universal disaster relief payments, we will provide disaster relief funds to all residents, including those excluded from the 5th disaster relief."

The funding plan is as follows: ▲ According to the demand of the Gyeonggi Provincial Council, the province will bear 90% and the cities/counties 10% in principle; ▲ For cities/counties such as Suwon, Yongin, Seongnam, Hwaseong, Siheung, and Hanam, where the government's local allocation tax is low, the province will exceptionally cover 100% of the shortfall. Additionally, ▲ To accommodate cities/counties opposing universal payments, it will be allowed to pay only 90% without city/county matching funds based on their autonomous judgment. The province plans to distribute approximately 600 billion KRW of adjustment grants from excess tax revenue to cities/counties early, considering their financial difficulties.

[Image source=Yonhap News]

Accordingly, Gyeonggi Province will bear 373.6 billion KRW, and cities/counties will bear 41.5 billion KRW. Governor Lee stated, "Although the degree varies, all citizens are experiencing the damage caused by COVID-19. The K-quarantine was also achieved through the active cooperation and sacrifice of all citizens. All citizens who have suffered together, actively cooperated with government quarantine measures, and shared heavy burdens should be fairly compensated."

Regarding questions about regional equity concerns related to universal disaster relief payments, Governor Lee dismissed them, saying, "Equity with other cities and provinces is something they can do if they need to." He further clarified, "This is similar to the criticism of why only Korea provides disaster relief funds when, for example, some African countries do not."

Meanwhile, the Democratic Party leadership holds a principled stance on Governor Lee's decision for 100% payment. After the Supreme Council meeting, Floor Spokesperson Ko Yong-jin said in a back briefing, "There are areas where local governments can act independently, unlike the central government, but the party leadership hopes there had been consultation and discussion with the central government." Party leader Song Young-gil also said after a meeting with the National Self-Employed Emergency Committee on the 3rd, "It is a matter for local governments to decide." Democratic Party Policy Committee Chair Park Wan-joo said at a press conference the same day, "While there are advantages to local governments executing what was agreed upon and passed by the National Assembly and the party-government consultation, we need to carefully consider both pros and cons."

However, former Democratic Party leader Lee Nak-yeon and former Prime Minister Chung Sye-kyun have opposed the 'universal disaster relief payment' that contradicts the government’s policy. On the 2nd, former Democratic Party leader Lee Nak-yeon told reporters, "There must be reasons for the bipartisan agreement in the National Assembly to provide payments to the bottom 88% income bracket," and added, "Governor Lee should decide while considering fairness with other local governments that intend to follow the National Assembly's decision." Lee’s former campaign spokesperson Jung Woon-hyun criticized, "Lee Jae-myung’s Gyeonggi Province is always like this, ‘separate soup’," and directly questioned, "Is Governor Lee, who tries to go a different way from the central government, claiming to be the president of the Gyeonggi Republic?"

Former Prime Minister Chung Sye-kyun also said, "It seems Governor Lee made this decision because he lacks national government experience," adding, "He has never been in the National Assembly, has not worked in the government, and has only been a local government head." He further stated, "The National Assembly, government, and Blue House have agreed, so if Governor Lee refuses to respect that and insists on a one-way approach, where will the national administration go?"

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