[Reporter’s Notebook] Ruling Party Presidential Candidates Call Again for Disaster Relief Fund Distribution

Democratic Party presidential candidate Lee Jae-myung is warming up before experiencing a netball game (a women-only sport inspired by basketball from the UK) with women in their 20s and 30s at Sangam Basketball Court, Deogyang-gu, Goyang-si, Gyeonggi-do on the morning of the 31st. 2021.10.31 Photo by National Assembly Press Photographers [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] "The work of a governor and the president who leads the entire country is on a completely different level. If that person becomes president... I am really worried about economic issues."

When recently asked about Lee Jae-myung, the Democratic Party presidential candidate, by a senior figure in the economic sector, this was the response accompanied by a deep sigh. The economic community has significant concerns about Lee’s bold economic pledges, represented by ‘basic income.’ Fundamentally, these proposals are rooted in populism and are often thrown out abruptly without careful consideration. As he has been confirmed not just as a ‘controversial politician’ but as the ‘ruling party’s presidential candidate,’ these concerns have deepened into genuine worries about the national economy.

In particular, Lee recently attracted attention with remarks that further solidify his identity as a ‘populist.’ He proposed providing an additional disaster relief fund of 300,000 to 500,000 won to all citizens. Without specifying concrete funding measures, he mentioned a supplementary budget and said, "We will find a possible way."

It is not only surprising that a candidate eligible for election casually proposes ‘money printing,’ but also that in South Korea’s history, there has never been a case of drafting a supplementary budget after November. The latest supplementary budget draft submission was on October 23, 2001, right after the unprecedented external risk caused by the US ‘9/11 terror’ incident.

The National Assembly’s review of next year’s budget is imminent. For the supplementary budget mentioned by the candidate to materialize, it would have to be reviewed almost simultaneously with the main budget. Even the fiscal authorities have taken a firm stance, saying that the possibility of a supplementary budget is "physically impossible."

Funding is also an issue. The immediately available method is deficit bonds, but with interest rates rising recently, more national debt would be an enormous burden. Since bond repayment and interest ultimately fall on the citizens, it would be like ‘robbing Peter to pay Paul’ for future generations. Whether this is a deliberate statement or an empty promise remains to be seen. However, as the ruling party’s presidential candidate, his remarks should be more prudent.

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