Main opposition candidate vows big gov't spending to overcome pandemic

Main opposition People Power Party presidential candidate Yoon Suk-yeol presents his policy promises during a New Year press conference at a cafe in Seoul, Tuesday. Joint Press Corps

By Kim Rahn

Main opposition People Power Party (PPP) presidential candidate Yoon Suk-yeol has pledged enormous financial support from the government to cope with pandemic-triggered economic difficulties and the nation's ever-declining birthrate.

While he showed commitment to turning the crisis into a chance for the nation's development, concerns have also risen over how the government intends to secure the necessary budget.

He announced his campaign promises during a New Year press conference in Seoul, Tuesday.

One of the schemes was trilateral “rent sharing” among leaseholders, tenants and the government to help small business owners and self-employed people who have been hit hard by quarantine measures against COVID-19 and have had difficulty paying monthly rent.

“I'll introduce the 'rent sharing system' under which leaseholders, tenants and the government pay one third of the rent each,” Yoon said in the conference.

Leaseholders would share one third of the rent, meaning they would not receive that amount, and the loss will be later covered by the government through tax deduction when the pandemic is over. Tenants who borrow money from financial institutions to pay the remaining two thirds of the rent, would have to pay back only half ― meaning one third ― and the government would pay the remainder to the institutions.

“The government budget will be used gradually for three to five years, and I expect about 50 trillion won ($41.8 billion) will be spent in total,” he said.

Yoon also pledged to have hospitals set up more intensive care unit (ICU) beds and bolster medical staff in case of future pandemics. If no pandemic breaks out in the future, the government will cover losses incurred by hospitals that boosted the number of ICU beds and personnel.

“I'll ensure people won't suffer from a lack of ICU beds and emergency rooms even if a greater medical crisis than COVID-19 hits the nation. The government will cover the personnel expenses and facility operation costs if they are not used,” he said.

In order to boost the nation's birthrate, he also promised 1 million won every month per newborn for a child's first year under a so-called “parents allowance,” which is estimated to cost 3.1 trillion won a year.

“Our goal is clear: we have to make the COVID-19 crisis as a momentum to leap toward the status of an advanced nation. I'll form a 'post-coronavirus response committee' and change the pandemic-led shock into a system for reorganization.”

But criticism grew that most of the policy promises require huge government budget and are insufficient to resolve the relevant problems. For the rent sharing scheme, Yoon said the government would compensate the losses after the pandemic is over, while there is no telling when it will end. Critics also say the allowance for parents will not resolve the low birthrate which is linked to many other issues such as a low number of marriages, youth unemployment and high housing prices.