Opposition Voices Also Raised... Reform New Party Calls 250,000 Won Support "Populism for Presidential Ambitions"

The Reform New Party criticized the passage of the '25,000 KRW Support Law for All Citizens' through the National Assembly's Legislation and Judiciary Committee on the 31st as "populism for presidential ambitions."

Kim Seong-yeol, chief spokesperson of the Reform New Party, stated in a commentary on the same day, "Is providing 250,000 KRW to all citizens really the best option?"

Spokesperson Kim pointed out, "The Democratic Party claims that providing 250,000 to 350,000 KRW in local love gift certificates to all citizens is a necessary law for restoring people's livelihoods," adding, "The Korea Development Institute (KDI) reported that only 30% of the budget spent on the first emergency disaster relief fund during the Moon Jae-in administration was used to stimulate consumption."

He said, "If the bill passes the plenary session, an estimated budget of about 13 trillion KRW, according to the National Assembly Budget Office, will be spent, but only 4 trillion KRW of that is effective," and criticized, "Even if government market intervention inevitably involves deadweight loss, a policy that spends 13 trillion KRW to achieve 4 trillion KRW in effect is the height of inefficiency."

Representative Heo Eun-ah speaking
(Seoul=Yonhap News) Reporter Han Jong-chan = Heo Eun-ah, representative of the Reform New Party, is speaking at the Supreme Council meeting at the National Assembly in Yeouido, Seoul, on the morning of July 5, 2024.
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Spokesperson Kim expressed concern, saying, "The state finances, which are bottoming out, are also a problem," and added, "Due to the fiscal input to overcome the COVID-19 crisis, South Korea's national debt reached a record high of 1,126 trillion KRW last year."

He also said, "On top of that, not only the debt but also the tax revenue shortfall caused by the Yoon Seok-yeol administration's tax cut policy is serious," noting, "Following a massive tax revenue shortfall of 56 trillion KRW last year, a deficit of more than 10 trillion KRW is expected this year," warning, "Generosity comes only when the granary is full."

He added, "In such a difficult situation for national finances, indiscriminate cash support without selection can only be explained as 'populism for political favor' and 'populism for presidential ambitions,'" and said, "The Democratic Party should reconsider whether providing 250,000 KRW to all citizens is truly the best alternative for restoring the people's economy."

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