Gov’t, DPK keep clashing over relief funds

Finance minister reiterates skeptical view about universal aid

The government has reiterated its negative opinion about a proposal by the ruling Democratic Party of Korea (DPK) to provide a fifth round of disaster relief payouts to all households in the country, regardless of their earnings.

“Although lawmakers have urged the government to offer disaster relief funds to all citizens, the government is considering practical ways to stimulate the economy by increasing consumption,” Prime Minister Kim Boo-kyum said in a National Assembly interpellation session, Wednesday.

Deputy Prime Minister and Finance Minister Hong Nam-ki also said the government is not thinking about providing universal coronavirus stimulus funds, in response to a question from Rep. Choo Kyung-ho of the main opposition People Power Party (PPP) at the National Assembly’s Strategy and Finance Committee meeting before the interpellation session that day.

“In the negotiation with the ruling

party, we are pushing ahead with providing more to those who suffered losses from the pandemic,” Hong said.

The government seeks to give the relief funds to the bottom 70 percent income group and a credit card cashback reward program worth up to 300,000 won ($260) for everyone.

This is in contrast to the ruling party’s plan to provide direct aid to the entire population with its second

supplementary budget worth up to 35 trillion won.

Hong said the size of the supplementary budget is expected to be around 30 trillion won.

Ruling party lawmaker Jung Chung-rae criticized Hong for his reluctance to provide universal aid.

“Among the relief funds that have been given so far, the first one given to the entire population was the simplest and received the most favorable reviews,” the lawmaker wrote on Facebook. “Instead of the selective relief fund causing difficulties in sorting and evoking dissatisfaction, it is more appropriate to offer direct financial aid to everyone.”

In addition to the real estate policies, the disaster relief fund and the supplementary budget were initially expected to be the key agenda for the interpellation session on economic policies.

However, lawmakers grilled economic ministers about other policies.

PPP lawmaker Yang Kum-hee criticized the government’s anti-nuclear power policy, saying it goes against the carbon neutrality vision. In response, the prime minister said nuclear power will continue to play an important role for a while in the nation’s electricity generation.

Rep. Jang Kyung-tae of the DPK urged the finance minister to enable state-run banks to increase voluntary retirements to create more jobs for young jobseekers. However, Hong said it was difficult to increase voluntary retirements at the moment, due to complaints about low severance pay.

Hong also said the finance ministry will screen candidates for new directors of the Export-Import Bank of Korea (Eximbank), including the one recommended by the union, based on their qualifications and capabilities, without giving any penalties or preferential treatment to the candidate recommended by the union.

PPP Rep. Seo Il-jun condemned Korea Development Bank Chairman Lee Dong-gull over the abrupt sale of Daewoo Shipbuilding &Marine Engineering, doubting that Lee followed McKinsey & Company’s advice to carry out restructuring on the nation’s shipbuilding industry to avoid cutthroat competition and overlapped investments.

Although lawmakers have urged the government to offer disaster relief funds to all citizens, the government is considering ways to practically stimulate the economy by increasing consumption.