"No House or Car, Yet I'm in the Top 12%?" Controversy Over Fairness of National Subsidy Payments

Expert: "Health Insurance Premium Standard System Must Be Improved Through More Precise Surveys and Adjustments"

On the 6th, when the payment procedure for the COVID-19 mutual aid national support fund (disaster relief fund) began, a notice indicating the availability of the emergency disaster relief fund was posted at a store in a traditional market in Mapo-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Seohyun] "I feel a bit unfair," "I hope the payment criteria are reviewed again."

Controversy over fairness has erupted regarding the payment criteria for the COVID-19 Coexistence National Support Fund (the 5th Emergency Disaster Relief Fund). The issue raised is that the individual's health insurance premium (health insurance fee) enrollment environment, divided into workplace subscribers and regional subscribers, affects the conditions for receiving the support fund.

Since the application for the National Support Fund began, posts raising fairness issues about the health insurance premium calculation criteria have been continuously posted on internet communities.

Netizen A said, "I live with my parents who run a small small business and continue working part-time at a convenience store, but I did not receive the support fund due to falling below the regional health insurance premium standard," and expressed dissatisfaction, saying, "On the other hand, even though they own a 2 billion won house in Seoul, if their child is a business owner, the workplace health insurance premium applies, and they receive the support fund. What kind of case is this?"

Another netizen B wrote, "I work earning 2.5 million won a month, and my husband is at a slightly better level, but we were not eligible for the support fund. In the case of my husband, a regional subscriber, the monthly rent is also reflected in the health insurance premium," adding, "It's a loan, not even our own house, so I absolutely cannot understand that the payment is based on the health insurance premium."

The National Support Fund is paid based on the health insurance premium payment amount imposed in June this year. Single-person households can receive it if the health insurance premium is 170,000 won or less. In terms of annual income, this is about 58 million won.

For households with two or more people, different criteria apply to single-income and dual-income households. The health insurance premium for workplace subscribers in single-income households is △ 200,000 won for 2-person households △ 250,000 won for 3-person households △ 310,000 won for 4-person households. For dual-income households, the standards are △ 250,000 won for 2-person households △ 310,000 won for 3-person households △ 390,000 won for 4-person households.

On the 6th, officials are receiving training at the COVID-19 Mutual Aid National Support Fund Call Center in Jungnang-gu, Seoul.
[Image source=Yonhap News]

The problem is that the criteria for workplace subscribers and regional subscribers differ, and for workplace subscribers, the health insurance premium is calculated solely based on salary income. On the other hand, regional subscribers have housing, automobiles, and other assets included in the payment criteria in addition to annual income.

This has resulted in high-income earners with few assets such as real estate, so-called "dirt spoon" dual-income households, and middle-class regional subscribers being excluded from the support fund. In fact, some workplace subscribers with expensive houses or large financial assets receive disaster relief funds simply because their monthly salary is low.

For example, a regional subscriber with an annual income of 30 million won who owns a 200 million won apartment and a passenger car worth about 30 million won will have a health insurance premium set at around 370,000 won, so even a 4-person household will not receive the disaster relief fund. On the other hand, a workplace subscriber with the same annual salary can receive the disaster relief fund even if they live in a 900 million won apartment and drive a Bentley, a luxury foreign car worth about 300 million won, because their health insurance premium is only about 80,000 won.

The government announced that even if the health insurance premium criteria are met, households whose total property tax base exceeded 900 million won last year or whose total financial income exceeded 20 million won last year will be classified as high-asset owners and excluded from the support target. However, to exceed a property tax base of 900 million won for a single apartment, the price multiplied by the official price and the fair market value ratio (60%) must be 900 million won, so only houses with considerably high market prices fall under the cutoff.

Experts suggest that to alleviate the fairness issue of the National Support Fund, the health insurance premium calculation system itself needs improvement. Professor Lee Inho of the Department of Economics at Seoul National University explained, "The government's intention behind calculating the National Support Fund based on health insurance premiums is to consider both income and assets," adding, "Compared to other indicators, it prevents judging an individual's economic situation solely by income."

He continued, "To solve the fairness issue, differences between regional subscribers and workplace subscribers should be considered and differentiated. For this, a more precise survey and adjustment capable of converting income and assets by the National Health Insurance Corporation are required."

Meanwhile, Park Wanju, the Policy Committee Chair of the Democratic Party of Korea, stated at the floor countermeasure meeting held at the National Assembly in Yeouido, Seoul, on the 7th, regarding the top 12% income households excluded from the 'COVID-19 Coexistence National Support Fund,' that "when there are disagreements about the health insurance premium calculation method, we will accept them as comprehensively as possible."

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