By Lee Kyung-min
The Seoul Metropolitan Government (SMG) and the Ministry of Health and Welfare are on a collision course after the latter decided not to approve the former’s plan to offer monthly subsidy to 3,000 young jobseekers.
While the SMG claims offering cash is the most practical and effective way to help underprivileged youth suffering from long-term unemployment, the ministry says the measure is not only a populist move that would result in moral hazard but also the city government failed to seek its approval, which is in violation of the law.
On Wednesday, the SMG began giving 500,000 won ($447) in cash to a total of 2,381 young citizens who met certain requirements. It plans to give the money monthly for up to six months to the 19 to 29 year olds who have lived in Seoul for more than one year.
Immediately after the payments began, the ministry issued a correction order to the SMG to halt the measure. It told the city government to cancel the handouts and report its compliance to the ministry by 9 a.m. today.
Related laws stipulate that if a municipality’s welfare policy is in violation of the laws or damages the public interest, the health ministry has the authority to issue a correction order and suspend or cancel the policy if the municipality fails to follow it.
They also stipulate that heads of the municipalities can file a petition with the Supreme Court within days upon receiving a correction or cancellation order if they object to them.
Fully expecting the ministry’s reaction, the SMG said it would file a petition with the court if the ministry orders it to cancel the subsidy program.
The ministry said the SMG is continuing to undermine the central government’s welfare plan, adding that offering short-term cash is merely a political tactic to woo voters.
“SMG initially promised to offer the support by issuing debit cards to review whether the money was spent directly in job-seeking efforts, but it opted to give cash. It is an irresponsible populist move, taking advantage of young people’s difficulties,” a ministry official said.
“The SMG also failed to guarantee fairness or transparency in setting up a private body to monitor the plan,” he added.
In response, the SMG said the central government’s policy to support young jobseekers has been simply ineffective.
“The government spent some 2.1 trillion won on welfare programs, but young Seoul citizens see no real help coming from them,” an SMG official said.
“Out of some 1.44 million Seoul citizens in their 20s, 500,000 people are trapped in a vicious cycle of unemployment. Eating and paying public transportation fees, rent, and utility bills is the biggest concern for them, and cash is the most helpful support,” he added.
The ministry also said the recipients should return the cash in full as it is an illicit gain, but the SMG disagrees, saying they don’t have the responsibility to do so as the money was already given before the ministry’s order or a Supreme Court decision.