Lee Jae-myung "From Nationwide Disaster Relief Fund to Small Business Support"… What Prompted the Sudden Shift?

Available Budget of 2.5 Trillion Won
Significantly Lower Than the Ruling Party's Expected 8 to 10 Trillion Won

Lee Jae-myung, Democratic Party of Korea Presidential Candidate

[Asia Economy Reporter Na Ye-eun] Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, withdrew his claim that the 19 trillion won surplus tax revenue should be used for a "nationwide disaster relief fund" (quarantine support fund) and emphasized support for small business owners and self-employed individuals.

On the 18th, Lee posted on his Facebook, titled "I will not insist on the nationwide disaster relief fund. Let's immediately implement what the ruling and opposition parties can agree on."

He stated, "The opposition party opposes the payment of the nationwide disaster relief fund. The government also expresses reluctance, citing difficulties in the budget structure such as the establishment of new budget items," adding, "It's unfortunate. However, we do not have the luxury to quarrel over our respective claims."

He continued, "I will not insist on the target and method of support," and raised his voice, saying, "If it is difficult to agree on the nationwide disaster relief fund, urgent support should be provided at least for the damages to small business owners and the self-employed."

He said, "There are sufficient funds. It is said that the additional tax revenue after July this year is 19 trillion won," and added, "We should promptly execute what can be supported immediately by utilizing available resources to the fullest and reflect what should be included in next year's budget."

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance. / Photo by Yonhap News

Lee addressed Yoon Seok-yeol, the presidential candidate of the People Power Party, who proposed a "50 trillion won pledge," saying, "Since you mentioned 50 trillion won support for next year, I believe you will not oppose it," and "I think the government will agree since this is not about borrowing money."

He added, "Local currency (local gift certificates) should be issued more than the total amount this year (21 trillion won)," and "The minimum amount for compensation for losses to small business owners (currently 100,000 won) should also be significantly raised."

Furthermore, he said, "For high-risk industries with personnel restrictions, support should be provided immediately using the surplus tax revenue, and it should be reflected as much as possible in next year's budget," emphasizing, "We cannot just argue about whether to scoop water with a bucket or call a fire truck while seeing the fire in front of us. It is right to prioritize implementing any method that is immediately agreeable and executable."

Meanwhile, earlier this year, the Democratic Party claimed that out of the 19 trillion won surplus tax revenue, about 8 to 10 trillion won would be collected next year, allowing for disaster relief payments of 200,000 won per person. However, the Ministry of Economy and Finance expressed a negative stance, stating that "tax payment deferral violates the law, and realistically, there are no taxes that can be deferred."

In response, the Democratic Party pressured the Ministry of Economy and Finance by even mentioning a "state audit," but it seems they shifted their position after belatedly confirming that the actual budget available from the surplus tax revenue is only 2.5 trillion won.

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