POLL 7 out of 10 liberals favor fiscally responsible approach to expanding welfare

People shop at a traditional market in Seoul as TV screens broadcast President Lee Jae-myung taking the oath of office during the presidential inauguration, Wednesday. Yonhap

As economic uncertainty deepens in Korea, even liberals are beginning to favor greater fiscal caution regarding welfare expansion, according to a poll from The Korea Times Saturday. Regardless of political affiliation, respondents cited price stability as the top economic priority that the Lee Jae-myung government should focus on.

Such public sentiment could present a challenge for the Lee administration, which has prioritized economic recovery and welfare expansion through increased government spending.

According to the public opinion poll conducted by Hankook Research at the request of The Korea Times, 61 percent of the total 1,000 respondents agreed that welfare is necessary but should be implemented gradually, in line with the country’s fiscal capacity.

Another 22 percent deemed such plans unrealistic and populist and indicated they should be scrapped. Only 14 percent supported the immediate implementation of such a scheme, viewing it as a realistic way to address social polarization.

Support for the cautious approach was strongest among backers of the ruling Democratic Party of Korea (DPK), with 72 percent of its supporters expressing a preference for gradual welfare expansion. Among the main conservative People Power Party supporters, 45 percent favored a cautious approach, while 49 percent opposed any welfare expansion. Among minor conservative Reform Party supporters, opinion was evenly split, with 45 percent on each side.

Basic income — the provision of regular, unconditional payments to all individuals — has long been one of Lee’s signature policy ideas as a politician.

During his presidential campaign, Lee pledged to build a "basic society," where the government would guarantee a basic standard of living for all people throughout all stages of life. This includes gradually expanding child allowances, introducing a savings scheme for the younger generation and expanding reverse mortgage programs to address senior poverty.

The poll reflected concerns about the cost of such policies. Although Lee emphasized a "phased implementation through pilot programs," he has not offered a concrete plan for securing funding. Many critics argue that the proposed strategy of restructuring existing expenditures alone is insufficient.

Korea’s government debt currently stands at 1,280.8 trillion won ($943 billion), or 48.4 percent of its GDP. If the government proceeds with a proposed 30 trillion won supplementary budget this year, total debt will exceed 1,300 trillion won, increasing the burden on future generations.

At the same time, about 33 percent of respondents — regardless of political preference — considered price stability as the new administration’s top economic priority. Job creation came second at 18 percent, with support for small business owners and the self-employed coming third at 14 percent.

The public sentiment contrasts with the overall inflation trend, which has remained relatively subdued. Inflation hovered in the low 2-percent range earlier this year and even fell to 1.9 percent in May, driven by declining global oil prices.

However, food prices, often the most viscerally felt measure of inflation, continue to climb. As an export-reliant country, the soaring prices reflect lagging effects of previous high exchange rates and soaring oil prices, which are gradually being passed on to consumers.

In May, processed food prices rose by 4.1 percent from the previous month, remaining in the 4-percent range for the second consecutive month. Dining-out costs were also up, climbing 3.2 percent year-on-year.

The public is also feeling the pinch from surging prices in meat and seafood, triggered by supply instability related to extreme weather. In May, the livestock price index jumped 6.2 percent year-on-year, the largest increase in 35 months, and seafood prices rose 6 percent.

The Korea Times commissioned the survey to gauge public sentiment. Hankook Research surveyed 1,000 adults nationwide in phone interviews on Wednesday and Thursday. The poll has a margin of error of plus or minus 3.1 percentage points, with a credibility rate of 95 percent. Further details are available on the National Election Survey Deliberation Commission’s website.