The "youth basic income" that President Lee Jae-myung introduced when serving as Seongnam mayor could be implemented again in Seongnam, Gyeonggi Province. This comes as the Seongnam City Council passed a related local government ordinance led by the Democratic Party of Korea.
However, there are many variables before the program can actually resume, as Seongnam Mayor Shin Sang-jin of the People Power Party, who has taken a negative stance on the program, could request reconsideration, and issues remain over funding shares due to Gyeonggi Province's fiscal tightening.
On the 7th, the Seongnam City Council approved the "Seongnam youth basic income payment local government ordinance," proposed by Democratic Party of Korea Councilor Yoon Hye-seon as the lead sponsor, at a special session plenary meeting.
In the vote, all 18 Democratic Party of Korea councilors supported it, while all 14 People Power Party councilors opposed it, out of a total of 32 seats.
The local government ordinance provides for paying 250,000 won per quarter, up to 1 million won annually, in local currency to 24-year-olds registered as residents in Seongnam.
The roots of the youth basic income lie in the "youth dividend" introduced when President Lee served as Seongnam mayor. In Nov. 2015, Lee said he would push the youth dividend policy, and after a related local government ordinance passed the city council in Dec. the same year, the program began in Jan. 2016.
At the time, the method was also to provide local currency worth 1 million won annually by paying 250,000 won per quarter to 24-year-olds residing in Seongnam.
Later, in 2020, when President Lee served as Gyeonggi governor, the "Seongnam youth basic income payment local government ordinance" was enacted, changing the structure so that Gyeonggi Province and Seongnam share funding.
However, the Seongnam City Council, where the People Power Party was the majority, abolished the local government ordinance in Jul. 2023, citing budget waste and a lack of program effectiveness. If the current local government ordinance is finally implemented, youth basic income would be revived for the first time in about three years.
However, the program's resumption is not confirmed just because the local government ordinance cleared the plenary hurdle.
This is because Seongnam Mayor Shin Sang-jin, who has shown a negative position on the youth basic income program, could request reconsideration from the city council.
Under the Local Autonomy Act, if the mayor requests reconsideration, the city council must vote again with a majority of all councilors present and at least two-thirds of those present in favor. If all 32 councilors are present, 22 votes are required.
The Democratic Party of Korea currently holds 18 seats, so to pass reconsideration at least four votes would have to break away from the People Power Party.
Gyeonggi Province's fiscal austerity stance is also a hurdle. Youth basic income is currently funded 70% by the province and 30% by the city. However, Gyeonggi Province, which declared a "fiscal emergency," has informed cities and counties that starting next year it will cap the provincial subsidy rate for local subsidy programs at a maximum of 30%.
If this policy is applied to youth basic income and the cost-sharing structure changes, the program cost that Seongnam must bear could increase significantly. Accordingly, future talks between Gyeonggi Province and Seongnam on sharing financial resources are expected to be a key variable for restarting the program.
Currently, among Gyeonggi's 31 cities and counties, the local governments that do not provide youth basic income are Seongnam and Goyang.