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| Prime Minister Kim Boo-kyum speaks during a National Assembly interpellation session, Wednesday. Yonhap |
Finance minister reiterates skeptical view about universal aid
By Park Jae-hyuk
The government has reiterated its negative opinion about the 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 that the government is not thinking about providing universal coronavirus stimulus funds, in response to a question from Rep. Choo Kyung-ho of the conservative 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 aid to those who suffered losses from the pandemic,” Hong said.
The government seeks to provide 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 else.
This proposal 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 that 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 out so far, the first one given out to the entire population was the simplest and received the most favorable reviews,” the lawmaker wrote on Facebook. “Instead of the selective relief fund, which causes difficulties in sorting and therefore evokes 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 topics for the interpellation session on economic policies.
However, lawmakers grilled economic ministers about other policies as well.
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 that 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, so as to create more jobs for young jobseekers. However, Hong said that it was difficult to increase these at the moment, due to complaints about low severance pay.
Hong also said that the finance ministry will screen candidates for the new directors of the Export-Import Bank of Korea (Eximbank) ― including one candidate recommended by the union ― based on their qualifications and capabilities, without giving any penalties or preferential treatment.
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 a restructuring of the nation’s shipbuilding industry to avoid cutthroat competition and overlapping investments.
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