By Jhoo Dong-chan
The central government is putting the brakes on local governments' recent moves to provide welfare for young people, saying municipalities should not adopt such populist policies without first consulting central government.
The opposition comes after Seoul, and Seongnam in Gyeonggi Province, announced plans to provide the benefits.
During a Social Security Committee meeting chaired by President Park Geun-hye at Cheong Wa Dae, Wednesday, she warned the cities that the government would cut their subsidies.
"The central government will slash subsidies to municipalities if they unilaterally introduce or change social welfare policies without prior consultation," said Health and Welfare Minister Chun Chin-youb.
According to the related law, municipalities need to consult with the central government before taking such action. This measure is to avoid policy duplication.
Municipalities and civic groups have claimed the law is at odds with local autonomy.
The controversy started after Seongnam announced its "youth dividends" plan of financial aid for jobless young people between 19 and 24, giving them up to one million won ($870) annually.
The beneficiaries will be people who have lived in Seongnam for at least three years. The city plans to provide the money regardless of their financial status or whether they have jobs or not.
The estimated cost for the policy is nearly 60 billion won ($51.8 million) per year.
Seoul Metropolitan Government (SMG) said earlier this month that it would support young jobseekers between 19 and 29 years of age beginning next year.
SMG said it will provide 500,000 won every month to a total of 3,000 young Seoulites.
Seoul says its policy is different from Seongnam's as it will offer the money only to those who submit a job-seeking plan or other activities to the city government. The selected people will receive financial benefits for up to six months.
The total cost is expected to be around 50 billion won for the next five years.
Chung said, "The central government is not trying to intervene in local governments' welfare policies. But taxpayers' money should not be wasted on overlapping welfare policies. Such a huge amount of money should be used to help other people who are not yet covered by welfare programs."
Seongnam Mayor Lee Jae-myung, however, said he would ignore the government's warning. He said the central government's policy on youth unemployment problem has had no effect, so the city had to step in. "If the central government opposes our plan, we'll push ahead with it anyway," he said in an interview with a local radio station.
The central government is putting the brakes on local governments' recent moves to provide welfare for young people, saying municipalities should not adopt such populist policies without first consulting central government.
The opposition comes after Seoul, and Seongnam in Gyeonggi Province, announced plans to provide the benefits.
During a Social Security Committee meeting chaired by President Park Geun-hye at Cheong Wa Dae, Wednesday, she warned the cities that the government would cut their subsidies.
"The central government will slash subsidies to municipalities if they unilaterally introduce or change social welfare policies without prior consultation," said Health and Welfare Minister Chun Chin-youb.
According to the related law, municipalities need to consult with the central government before taking such action. This measure is to avoid policy duplication.
Municipalities and civic groups have claimed the law is at odds with local autonomy.
The controversy started after Seongnam announced its "youth dividends" plan of financial aid for jobless young people between 19 and 24, giving them up to one million won ($870) annually.
The beneficiaries will be people who have lived in Seongnam for at least three years. The city plans to provide the money regardless of their financial status or whether they have jobs or not.
The estimated cost for the policy is nearly 60 billion won ($51.8 million) per year.
Seoul Metropolitan Government (SMG) said earlier this month that it would support young jobseekers between 19 and 29 years of age beginning next year.
SMG said it will provide 500,000 won every month to a total of 3,000 young Seoulites.
Seoul says its policy is different from Seongnam's as it will offer the money only to those who submit a job-seeking plan or other activities to the city government. The selected people will receive financial benefits for up to six months.
The total cost is expected to be around 50 billion won for the next five years.
Chung said, "The central government is not trying to intervene in local governments' welfare policies. But taxpayers' money should not be wasted on overlapping welfare policies. Such a huge amount of money should be used to help other people who are not yet covered by welfare programs."
Seongnam Mayor Lee Jae-myung, however, said he would ignore the government's warning. He said the central government's policy on youth unemployment problem has had no effect, so the city had to step in. "If the central government opposes our plan, we'll push ahead with it anyway," he said in an interview with a local radio station.
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