Democratic Party presidential candidate Lee Jae-myung (left) presides over a meeting of the Party’s Central Election Countermeasures Committee held at the National Assembly on the 3rd. / Reporter Kim Beom-jun “/>
Democratic Party presidential candidate Lee Jae-myung (left) presides over a meeting of the Party’s Central Election Countermeasures Committee held at the National Assembly on the 3rd. / Reporter Kim Beom-jun
Prime Minister Kim Bu-gyeom put the brakes on the proposal of the Democratic Party presidential candidate Lee Jae-myung for additional payment of disaster aid for all nationals, saying, “I do not have the financial resources right now.” Candidate Lee set up a confrontation with Prime Minister Kim, asking the party and the leadership of the party to actively pursue it.
Prime Minister Kim appeared on CBS Radio on the 3rd and answered a question about the additional payment of the national disaster aid (300,000 to 500,000 won per person), “I can’t talk about the political promises made by[Lee]but I can’t afford the financial resources right now. There is no,” he said. “The finances are clear,” he said. Isn’t it a situation in which money comes out when you just go through this pocket and that pocket?” he added. This is the first time a government official has publicly opposed the proposal.
Prime Minister Kim said, “Even if (Lee) is active, this year’s budget is finished (in two months) and the National Assembly should prepare an additional supplementary budget. I have to put it in my budget for next year… ” he said. This means that it is difficult to actually reflect this year’s budget as well as next year’s budget that has entered the National Assembly review.
He emphasized, “We see 2.5 to 3 million people who cannot be helped by the Loss Compensation Act, and how to help them is the most urgent task.”
Candidate Lee once again expressed his intention to pursue the initiative, showing a conflict with Prime Minister Kim. Candidate Lee said at the first National Election Countermeasures Committee held at the National Assembly, “Please actively promote the payment of additional disaster relief funds that can take care of the lives of all citizens and revitalize the economy.”
Prime Minister Kim Bu-gyeom “Does money come out of looking in your pocket” vs. Lee Jae-myung “There is no obstacle to the national debt ratio”
Prime Minister Bu-gyeom Kim (pictured) publicly opposed the proposal of Democratic Party presidential candidate Lee Jae-myung to provide at least 300,000 to 500,000 won in disaster aid to all citizens. Analysts also say that while emphasizing the national fiscal burden, they indirectly expressed dissatisfaction with the pressure of the current government to implement populist policies. Prime Minister Kim also spoke with the intent of “determining at the National Assembly level rather than handing it over to the government” about the suspension of taxation on virtual assets.
Kim “Political Promise… I don’t have the energy.”
Prime Minister Kim appeared on CBS radio by phone on the 3rd to explain ‘With Corona’ (step-by-step recovery of daily life). When asked about the ‘6th National Disaster Relief Fund’ proposed by Candidate Lee on the 29th of last month, he replied, “I can’t talk about the political promises made by Candidate Lee, but I don’t have the financial resources right now.”
Candidate Lee is arguing that the amount of disaster aid payments is insufficient at 1.3% of the gross domestic product (GDP). Recently, the government and Candidate Lee have been in conflict over whether or not to pay the entire nation.
Again, this time, the government is not easy to come up with a budget for additional disaster subsidies (about 15 to 25 trillion won), and it is difficult for the government due to the deterioration of the government’s finances. The additional tax revenue (about 10 trillion won), which is expected to be collected more this year, is also being used to pay off the national debt.
Prime Minister Kim emphasized that selective support for small business owners and self-employed people who are in the blind spot of the Loss Compensation Act is more urgent than disaster support for all citizens. He said, “Loss has been accumulated for over a year and a half, but there are too many small business owners and self-employed people who cannot help with the loss compensation law. On the 25th of last month, President Moon Jae-in urged the National Assembly to delve into support for the excluded industries, saying, “Our society should share the difficulties with the industries that are not covered by the Loss Compensation Act.” Accordingly, it is reported that the government is preparing measures such as payment of consumption coupons or loan support for industries that have been severely affected, such as travel/tourism, accommodation, and performances, centering on the Ministry of Strategy and Finance.
On that day, Prime Minister Kim also expressed indirect dissatisfaction with the political circles. This is about the extension of the virtual asset tax deferral recently proposed by Democratic Party lawmaker Kim Byung-wook. Prime Minister Kim said, “This is an amendment to the law. If the National Assembly decides confidently without passing it on to the government, the government has no choice but to follow it.”
War of nerves between Lieutenant Colonel Lee and the government
Candidate Lee re-emphasized the need for additional disaster relief payments even after it became known that Prime Minister Kim “has no financial resources.” At the first meeting of the Party’s Central Election Countermeasures Committee held on the same day, he emphasized, “We must take care of the livelihoods of the people who have been directly affected by the corona virus and indirectly and extensively.” He also urged the party and floor leadership to “actively push forward with the issue of additional payment of disaster aid that can revitalize the economy.”
Based on Lee’s remarks on this day, there are also observations that the conflict between the government and the predecessor, led by Lee, may intensify over the leadership of future state affairs. Candidate Lee as if conscious of Prime Minister Kim’s disappointment due to financial problems, said, “Korea has the highest household debt ratio in the world,” and argued that “it is not because the people are lazy, but because of the government’s policy environment with little public transfer income and household support.” . “The household debt ratio is high and the national debt ratio (47.3% as of this year’s Ministry of Strategy and Finance) is in an abnormal state,” he said.
Song Young-gil, chairman of the Democratic Party, responded, “I will do my best to become a National Assembly for the People’s Lives.” Senior Spokesperson Koh Yong-jin said, “Lee’s will for disaster relief is strong.” Regarding Prime Minister Kim’s remarks regarding disaster aid, he said, “(Next year) will listen to the government’s opinion on what to put in the main budget,” he said.
By Moon Hye-jeong/Ko Eun-i, staff reporter selenmoon@hankyung.com
