"Desperate for Recovery" vs "Election Spending" Lawmakers Clash Over 'Nationwide Consolation Payment'

President Moon Jae-in attended a meeting with the Democratic Party leadership at the Blue House main building on the morning of the 19th and exchanged fist bumps with Representative Lee Nak-yeon. / Photo by Yonhap News

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[Asia Economy Reporter Lim Juhyung] The ruling and opposition parties clashed over the so-called 'nationwide consolation payment' policy proposed by President Moon Jae-in. While the Democratic Party of Korea urged positive consideration, saying it would greatly contribute to economic recovery after the COVID-19 crisis, the opposition strongly criticized it as a 'vote-buying act for election purposes.'

Earlier, President Moon stated at a 'Democratic Party leadership invitation meeting' held at the Blue House main building on the 19th that the payment of support funds to boost public morale could be considered after the COVID-19 situation ends.

Kang Min-seok, Blue House spokesperson, explained at a briefing that "when Democratic Party leader Lee Nak-yeon and floor leader Kim Tae-nyeon mentioned support funds for economic stimulus, it was proposed in the spirit of 'let all citizens cheer up,'" adding, "President Moon emphasized the support funds to comfort the people and simultaneously stimulate consumption."

Lee Nak-yeon, leader of the Democratic Party of Korea, is giving a greeting at a meeting between President Moon Jae-in and the Democratic Party leadership held on the morning of the 19th at the Blue House main building. / Photo by Yonhap News

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In response, the ruling party immediately expressed support. Choi In-ho, senior spokesperson for the Democratic Party, said in a statement that "the meeting between the president and party leadership was a warm communication, an open-hearted exchange, and a place to worry about the future together," emphasizing, "The 'disaster relief fund for public consolation and morale boosting' mentioned by the president is understood as a full acceptance of the leadership’s proposal, including Lee Nak-yeon, for economic stimulus and consumption promotion once COVID-19 subsides."

On the 21st, the Democratic Party reiterated the necessity of the 'nationwide consolation payment' in a written briefing. Spokesperson Shin Young-dae explained, "The mention of considering the national consolation support fund was a statement aimed at accelerating the end of COVID-19 and the recovery of ordinary daily life ahead of vaccination," adding, "Considering the sacrifices of self-employed and small business owners due to social distancing measures, the role of the state and government inevitably becomes more urgent."

Joo Ho-young, Floor Leader of the People Power Party / Photo by Yonhap News

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On the other hand, the opposition criticized it as an 'election policy.' With the Seoul and Busan mayoral by-elections approaching, discussing cash handouts as a favor was pointed out as populism.

Bae Jun-young, spokesperson for the People Power Party, said in a statement on the 21st, "Is it normal to bring up consolation payments first when concerns about the third wave of COVID-19 resurgence are growing? Just admit it’s a consolation payment for election purposes," criticizing, "Calling it a consolation payment as if bestowing charity while returning taxpayers’ money is a sin beyond hypocrisy. Do you see the people as 'primitive voters'?"

Criticism also arose regarding reckless management of national finances. On the same day, Joo Ho-young, floor leader of the same party, wrote on Facebook, "Who did you consult with about the decision to give a 'cheer up' consolation payment on top of the fourth disaster relief fund exceeding 20 trillion won?" and pointed out, "President Moon promised the Democratic Party 'fiscal distribution,' but even the kings of Joseon did not distribute state funds so generously."

Former People Power Party lawmaker Yoo Seung-min also remarked, "This is why it is called a vote-buying act ahead of the election," adding, "When the situation moves away from COVID-19, the uncontrolled national finances of the past four years should be normalized, but the president does not seem to have any intention of doing so."

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