Gov't, ruling party at odds over disaster aid

By Kang Seung-woo

The ruling party and the government remain apart on the scope of beneficiaries for the emergency disaster relief money to be provided for people suffering financial strain from the COVID-19 pandemic.

The government is considering delivering up to 1 million won ($820) per household in accordance with the number of household members in the bottom 70 percent of income-earners. To this end, it proposed the second supplementary budget of 7.6 trillion won ($6.24 billion) last week. Along with 2.1 trillion won from local governments, a total of 9.7 trillion won will be used for 14.8 million households belonging to the income bracket.

However, the ruling Democratic Party of Korea (DPK) is urging the finance ministry to give the money to all households ― a measure it offered as a pledge during the general election campaign. The party's plan requires an additional 4 trillion won that it seeks to secure via government bond issuance.

Despite growing calls from the ruling party, the government is staying put with its initial plan.

“The government has decided to give an emergency allowance to 14.8 million people to help them deal with the COVID-19-triggered economic difficulties and I ask for understanding and cooperation from those who are excluded from the recipient list,” Prime Minister Chung Sye-kyun said during a speech on the supplementary budget at the National Assembly, Monday.

“Considering the nature of disaster relief money, the extra budget bill needs to be passed immediately. The government is fully prepared to provide the allowance upon legislative approval.”

The speech was made one day after the DPK and the government, along with Cheong Wa Dae, held a three-hour meeting to discuss the issue, but failed to narrow their differences due to the finance ministry's disapproval of the DPK's plan.

The sticking point is that the finance ministry is concerned that expanding the disaster allowance may place a strain on the nation's financial soundness because the envisaged expansion means the government issuing additional bonds ― in other words, an increase in the national debt.

The presidential office also remains cautious about the expanded relief package.

“The issue now needs to be discussed at the National Assembly,” said Kang Gi-jung, senior presidential secretary for political affairs. “The government cannot submit an amendment at this point.”

In response, DPK floor leader Rep. Lee In-young said they still can address the issue, adding that the party will not step back from the initial plan.

“I believe the party and the government will be able to find a harmonious solution,” Lee said during a radio interview earlier in the day.

“During the election campaign, the DPK maintained that the government give the relief money to every citizen and we believe there is public consensus on it. We will try to convince the government.”

Lee added: “The party's position will not change in the moment because the election is over.”

The main opposition United Future Party (UFP) is another emerging hurdle for the DPK to surmount before providing the rescue package for all.

Unlike its former chairman's pledge to give 500,000 won to every citizen for disaster relief ― a pledge made during the campaign as well ― the UFP is now opposed to the plan.

“To give the allowance to the upper 30 percent of people, who are still believed to have enough money to spend, is not likely to boost domestic consumption,” Rep. Kim Jae-won of the UFP, head of the Assembly's Special Committee on Budget and Accounts, said during a party meeting.

“In addition, we oppose the bond issuance as it could shake national finances.”