Parties turn to offering money to all people

United Future Party Chairman Hwang Kyo-ahn, center, urges the government to provide 500,000 won per person in Korea to help cushion the financial shock stemming from the COVID-19 pandemic, during his election campaign in Seoul, Sunday. / Korea Times photo by Oh Dae-geun

By Kang Seung-woo

Major political parties are now unanimously backing a plan to provide emergency disaster relief money to every household to help them deal with the impact of the coronavirus pandemic, a more aggressive scheme than the government's earlier plan to provide it to the bottom 70 percent of households.

For some parties, this is a change from their initial stance when they called the government's cash relief plan a “vote-seeking, populist move” ahead of the April 15 general election. Now they are also apparently seeking votes from the upper 30 percent.

However, it remains to be seen if such a plan is feasible as the finance ministry is worried about financial soundness following the expanded allowance.

On March 30, President Moon Jae-in announced that the government would pay emergency disaster relief money to households in the bottom 70 percent income bracket, under which 1 million won ($816) would be given to a four-person household. To finance it, he said the government would push for a second extra budget.

The selective cash relief, however, drew backlash from the upper 30 percent, who claim they were also suffering from the COVID-19 crisis. The plan to determine the 70 percent based on last year's health insurance payments was also criticized for not reflecting people's current financial circumstances and for taking too much time to sort out the beneficiaries.

Then, the opposition parties began to appeal to the upper 30 percent.

Main opposition United Future Party (UFP) Chairman Hwang Kyo-ahn suggested Sunday that the government give 500,000 won to every citizen for disaster relief. He said, without the time required for sorting out the recipients, it would be the most help to those in urgent need. Previously, the conservative party denounced the government and the ruling Democratic Party of Korea (DPK) for pandering to voters by creating the disaster fund.

Other minor parties ― the Minsaeng Party and the Justice Party ― also called on the government to expand the scope of the recipients, although they had differences over the size of the payout and whether it should be given on an individual or household basis.

The DPK, which hesitated to suggest the expansion of the relief beneficiaries out of concerns over a possible attack from opposition parties, welcomed the move.

“It is important to show that the country protects everyone regardless of region and income,” DPK Chairman Rep. Lee Hae-chan said during a party meeting in Busan, Monday.

“As soon as the general election is over, the party will seek measures to offer the disaster fund to the whole country.”

The DPK said it requires 9.1 trillion won to carry out the government's initial plan to provide between 400,000 won to 1 million won according to the number of members of a household in the bottom 70 percent, and if it is expanded to include the upper 30 percent, it will need an additional 4 trillion won.

DPK floor leader Lee In-young said, Tuesday, he welcomed Hwang's changed stance, saying it will clear the hurdle of political strife between the rival parties. He suggested an emergency meeting between floor leaders of all parties to allocate the relevant budget swiftly and provide money within this month.

A Cheong Wa Dae official also said the government would submit a second extra budget bill as soon as possible and have deep discussions with the ruling and opposition parties in the process.

However, the Ministry of Economy and Finance remains cautious about the proposal, citing financial stability concerns.

“At this point, the priority is for the government to submit an extra budget bill to the National Assembly for approval of paying those in the bottom 70 percent income bracket,” a finance ministry official said.

“Following the general election, if there is another call for expanding the scope of recipients, we will review whether to increase the amount.”

In addition, some are skeptical about whether the plan will go as planned after the election as parties may postpone approving the bill for one reason or another once their need to woo voters is fulfilled.