Rival candidates strive to lure voters with state subsidy pledges

Yoon Seok-youl, left, presidential candidate of the main opposition People Power Party, and Lee Jae-myung, candidate of the ruling Democratic Party of Korea shake hands at an economic forum held at Grand Walkerhill Seoul, Wednesday. Joint Press Corps

By Jung Da-min

The rival candidates of the country's two major parties, vying to become the next president, are engaging in a cash handout competition to woo voters.

Their pledges, however, are facing the criticism that they are populist and could harm the country's fiscal stability.

Lee Jae-myung of the ruling Democratic Party of Korea (DPK) has proposed providing another round of COVID-19 disaster relief funds to all people regardless of their financial status.

Supporting his idea, the DPK said Tuesday it would push for handouts of 200,000 won ($170) to 250,000 won to all citizens, claiming that the money is to cover people's expenses in following quarantine guidelines. It said funding would come from this year's tax revenue surplus, and so no state bonds would have to be issued.

The ruling party wants to hand the money out in January, in an apparent move to appeal to voters ahead of the presidential election slated for March 9.

However, a conflict is expected during the National Assembly's examination of the state budget, as the government and opposition parties are opposing the ruling party's move, citing concerns over the country's national debt.

Yoon Seok-youl, the presidential candidate of the main opposition People Power Party (PPP), criticized the DPK's move, calling it populism. But Yoon himself is also facing questions for promising that if elected he would provide 50 trillion won in subsidies to the self-employed to compensate for losses incurred in following the government's social distancing guidelines; something his critics also call a populist action.

In an interview with the Chosun Ilbo newspaper, Sunday, Yoon said he planned to allocate the 50 trillion won in "disaster subsidies" in the 100 days following the inauguration of the new administration, which the critics labelled as unrealistic and infeasible.

Former Prime Minister Kim Dong-yeon, who has joined the presidential race by founding his own party, The New Wave, told reporters at the National Assembly, Tuesday: "It is regrettable that the candidates of two major parties are saying things that they would never say if the money was coming from their own pockets. Their cash handout promises are based on a zero understanding of the country's fiscal situation and they seem to have the wrong idea that money is automatically created endlessly."

Ahn Cheol-soo, the minor opposition conservative People's Party's leader and presidential candidate, also said on Facebook, Tuesday, that the cash handout competition between Lee and Yoon would only end up increasing the tax burden on the younger generation.

"They may have concluded such cash handout plans will give them an advantage in getting votes. But young people are well aware that they will eventually have to shoulder the financial burden," Ahn wrote. "What they have to do first for the younger generation is to provide a vision for the nation's growth, job creation policy and labor reform."

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