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| ▲ In May last year, when the first national disaster support was paid, a notice on the availability of emergency disaster support was posted at a store in Namdaemun Market, Jung-gu, Seoul. | |
| Ⓒ Yonhap News |
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In the new year, discussions began to provide disaster assistance to all citizens to overcome Corona 19. As for the payment timing, the point at the end of step 2.5 of social distancing is being considered promisingly so that support for business restricted industries can be provided.
The conservative opposition party opposes that it is populism for the by-election of Seoul and Busan mayors, but there are also voices that some political circles, centered on minority parties, should also consider ways to regularize the payment of disaster subsidies.
Disaster subsidies are paid to the public, the government and the ruling party have begun to speak out
The ruling party lit a fire in the discussions on the payment of national disaster support. “I propose to discuss the 2nd National Disaster Compensation Fund” at the Supreme Committee’s meeting on the 4th. “A message to all the people who silently endured the corona 19 thorny road in the past year.” Said.
“There are many people who have lost their jobs, closed their shops, and have been driven to life and death. These people should not be turned away,” he said. Explained. At the same time, it suggested 1 million won for a family of 4 as a payment scale.
The government provided support for Corona 19 through four additional supplementary arrangements last year. However, it was only once in May of last year that a disaster support fund (1 million won for a household of 4 people) was paid to the nation. If the disaster support fund is executed this year, it will be the second payment.
Democratic Party CEO Lee Nak-yeon also said in an interview with KBS on the 4th, “If Corona 19 calms down, we can also review the plan for the nation’s disaster subsidies,” and “it seems appropriate when the spread tax subsides.”
The government is also open to possibilities. In an interview with a media outlet recently, Prime Minister Jeong Sye-gyun said, “It is necessary for the people to live in order to have financial soundness.” Although no concrete discussion has been disclosed, the atmosphere is ripe.
Consumption boosting effect has been confirmed… Opposition opposition parties, burden of funding
The effect of boosting consumption, which was confirmed when the first subsidy was paid, is also giving strength to the voices of the ruling party and the government.
According to the’Effects and Implications of the Emergency Disaster Subsidy Policy’ published in December last year by the Korea Development Institute (KDI), the result of comparing the period before (16 to 18 weeks) and after (20 to 25 weeks) the disaster support payment. After the disaster support payment, card sales increased by 4 trillion won.
In the sectors where support funds can be used, sales increase of 26.2~36.1% compared to the total input budget was also observed. In particular, sales of durable goods such as furniture, stationery, and bookstores rose 10.8%p, while essential goods such as convenience stores and supermarkets (8.0%p), face-to-face service (3.6%p), and food service (3.0%p) also rose.
The Korea Development Institute interpreted that “the shrinking household consumption began to recover after the first emergency disaster subsidy was paid to the entire population in May.”
However, the opposite of the conservative opposition is a variable. The people’s power is criticizing the discussion of the national disaster subsidies as’releasing the money for elections’ ahead of the re-election in April. Former lawmaker Yoo Seung-min said, “As the re-election approaches, malicious populism is raising its head. It is neither fair nor just to pay equally to the people, and it is an inferior policy with a low effect of boosting consumption as an economic policy.”
It is also burdensome to prepare a budget for the payment of disaster support for the whole country. If the 4th disaster subsidy is paid to the public, a budget of around 15 trillion won is required, and an additional budget is inevitable. There is also a limit to the use of the reserve funds organized in this year’s budget, so additional financial resources must be provided through the issuance of deficit government bonds.
Provided to the whole country-‘Two-track’ to support the selection of damaged industries
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| ▲ On the 4th, members of the Basic Income Party, Green Party, Mirae Party, and Women’s Party are calling for the establishment of a budget for regular payment of national disaster assistance in 2021 at the National Assembly Communication Hall on the 4th. | |
| Ⓒ Joint coverage photo |
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Experts highly valued the economic effects of the national disaster support payments, and suggested that we need to find a way to return benefits to industries affected by business restrictions.
Ki-gyun Song, director of the Economic Research Institute Song Ki-gyun, said, “I basically agree to pay disaster support to the whole country. However, there should be a plan to increase sales for industries that are suffering from social distancing steps.” Song continued, “First of all, the third disaster support fund (selection) will be paid as scheduled, and we will be able to review a plan to provide the nationwide payment in accordance with the time when the corona incident subsides and business restrictions ease.
There are also opinions that take this opportunity to review the plan to regularize national disaster subsidies. It is also a plan requested by the Basic Income Party, the Green Party, the Mirae Party, and the Women’s Party.
Kang Nam-hoon, a professor at Hanshin University, who has advocated basic income, said, “You can also consider how to make the payment of disaster subsidies on a regular basis until the time when the coronavirus population immunity is formed in the third quarter of this year. It can also induce consumption patterns,” he said. He also emphasized, “Separate support should be provided for industries that are struggling with business restrictions.”