"Yoon Administration's First Budget Maintains Sound Fiscal Policy... Focused on Socially Vulnerable Groups" (Comprehensive)

Negotiations on Next Year's Budget Between Ruling Party and Government
Significant Expansion of Employment Incentives for Disabled
Transportation Allowance for Low-Income Disabled
Broadened Eligibility for Agricultural, Livestock, and Seafood Discount Coupons

On the morning of the 24th, Kwon Seong-dong, floor leader of the People Power Party, Chu Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance, along with attendees and officials, were conversing before the closed-door session at the party-government consultation meeting on the 2023 budget bill held at the National Assembly in Yeouido, Seoul. 2022.8.24 Photo by the National Assembly Press Photographers Group [Image source=Yonhap News]

[Asia Economy reporters Hyunju Lee and Boryeong Geum] The ruling party and the government agreed on the next year's budget on the 24th, emphasizing maintaining sound fiscal management while maximizing support for socially vulnerable groups. They decided to increase employment incentives for persons with disabilities and provide a leap preparation fund to job-seeking youth. Additionally, to stabilize prices, they plan to raise energy vouchers for low-income households and more than double the recipients of discount coupons for agricultural, livestock, and fishery products.

Seong Il-jong, Policy Committee Chairman of the People Power Party, said at a briefing that "next year's budget is being prepared based on the concept of supporting the lives of the people and the next generation," adding, "However, since people's lives are very difficult, I requested that the budget for vulnerable groups and low-income citizens be reflected as much as possible within the limits allowed by fiscal policy."

The ruling party and government agreed to significantly expand support measures for persons with disabilities. The People Power Party requested an increase in the current employment incentives for persons with disabilities, which are set at around 300,000 to 800,000 won, and proposed a new monthly transportation allowance of 50,000 won for low-income persons with disabilities. Chairman Seong explained, "We requested about a 20% increase at the lower limit and a bold increase of more than 10% at the upper limit for the employment incentives. We also judged that providing transportation expenses to persons with disabilities who live with hope is appropriate, and the government agreed to actively reflect this."

The future generation, youth, will also be actively supported with national funds. A budget request has been made to provide a leap preparation fund of 3 million won to youth who complete job-seeking programs. Chairman Seong said, "Regarding jobs, youth who complete preferred job programs such as those offered by Samsung and SK have higher employment rates," adding, "We requested a significant budget increase for this." Additionally, to secure a safety net preventing youth from falling victim to jeonse (long-term lease) fraud, a new support for a 60,000 won monthly guarantee insurance subscription fee will be established.

As a measure against high inflation, the ruling party and government agreed to consider a 50% increase in energy vouchers for low-income households. The recipients of discount coupons for agricultural, livestock, and fishery products will also be increased from about 5.9 million currently to about 17 million next year, more than doubling the number of beneficiaries.

Following the recent heavy rain damage highlighting the importance of deep underground rainwater tunnels, the ruling party and government agreed to include design costs for these tunnels in next year's budget. Chairman Seong said, "The plan originally proposed by Seoul Mayor Oh Se-hoon was abolished during former Mayor Park Won-soon's administration," adding, "It has been proven that urban areas can suffer significant damage in the era of climate change, so this will also be included in next year's budget."

[Image source=Yonhap News]

Support for small business owners and self-employed individuals will also include a debt adjustment budget for about 250,000 people to mitigate debt risks caused by high interest rates, which will be included in the government's proposal. Furthermore, budgets for business closure support and capacity building for small business owners and self-employed individuals will be reflected again next year, following this year.

Agricultural direct payments will be additionally provided to 560,000 people, and direct payments will be newly established for about 47,000 small-scale fishing village households and fishing boats. In addition, an increase in veterans' benefits has been requested, with plans to raise the amount by 30,000 won annually, aiming to reach at least 500,000 won in the future.

Regarding the total expenditure scale of the Yoon Suk-yeol administration's next year's budget, Chairman Seong said, "The government budget has not yet been approved at the Cabinet meeting, and since the party made requests today, it is not possible to estimate yet," adding, "I only mentioned representative items, but all these need to be estimated for the total scale to be determined."

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