On the 14th, Gyeonggi Province Governor Kim Dong-yeon commented on Lee Jae-myung of the Democratic Party of Korea's key promise concerning the '250,000 won living recovery consumption coupon for all citizens,' saying, 'Let's support those who are struggling and in need more closely and significantly.' This statement was made just a day after the Democratic Party announced its supplementary budget plan that included cash support through a 'universal payment' method.
On that day, Governor Kim remarked during a special lecture at the Gwangju Business Federation, 'They still say we should give 250,000 won living recovery support to everyone,' adding, 'I agree with the distribution of the living recovery support fund, but there are two issues with giving the same 250,000 won to every citizen.'
Governor Kim pointed out that ▲ the poorer the vulnerable class, the higher the marginal propensity to consume (the increase in consumption relative to the increase in income) and ▲ that Lee promised to withdraw the '250,000 won' on the condition of the ruling party's cooperation in organizing the supplementary budget. He particularly noted that providing the living support fund selectively to the bottom 25% income group would increase policy efficiency, allowing 1 million won per person.
He stated, 'Unlike the vulnerable class, wealthy individuals do not eat four meals a day or buy more clothes just because their income increases.' He also mentioned, '(Lee) said he could concede or withdraw the living recovery support fund for the supplementary budget, but eventually, he added it,' remarking, 'The Democratic Party's support rating being similar to the People Power Party indicates that the party does not instill trust.' He insisted that the party must demonstrate policy consistency.
◇ Criticism aimed at 'Moon administration prime minister' and 'Roh's man'
Former Prime Minister Kim Boo-kyum also posted on Facebook that day, asking, 'How long will we engage in disputes over the supplementary budget?' He urged the Democratic Party to be generous, saying, 'Remove the insistence on the 250,000 won.' This implies a call to withdraw the living recovery consumption coupon, which the government and ruling party oppose, and to expedite the supplementary budget formulation.
Lee Kwang-jae, a former lawmaker known as 'Roh Moo-hyun's man,' also published a post saying, 'Let’s get our act together and go in the right direction.' He referenced comments made by Lee regarding the controversial semiconductor industry's 'exemption from the 52-hour work week' (white-collar exemption) alongside the distribution of 250,000 won to all citizens. He suggested focusing on supporting low-income individuals and stimulating consumption, stating, 'While the supplementary budget must include support for the public, it should not be 250,000 won for everyone.'
◇ Only the name changed from 'support fund' to 'consumption coupon,' with 15 trillion won allocated
The day before, the Democratic Party announced a supplementary budget plan totaling 35 trillion won, which included a budget of 15 trillion won for the 'living recovery consumption coupon.' The consumption coupon budget accounts for 43% of the total. All citizens will receive regional currency equivalent to 250,000 won, with an additional 100,000 won granted to the vulnerable class. It was also mentioned that the finances would utilize budgets that the government did not spend, while any shortfall could be covered by issuing deficit bonds.
The Democratic Party proposed this supplementary budget plan just two weeks after Lee Jae-myung's statement on 'withdrawing the living support fund.' Essentially, it is reviving the living recovery support fund under a new name. Previously, on the 31st of last month, Lee stated during a party leadership meeting, 'If the government and ruling party maintain an attitude that they cannot organize and execute the supplementary budget because of the living support fund, then I will give up on that fund.'
However, on this day, the party's floor leadership remarked, 'While we may say we could abandon it if the government suggests better projects, we cannot abandon core projects without any measures.' They also noted, 'In the process of consulting with the government, we may consider selective support,' adding that 'instead of adopting the living recovery consumption coupon, we could abandon (support for all citizens).'