[ED] Basic anti-disaster income - The Korea Times
The Korea Times

Settings

ⓕ font-size

  • -2
  • -1
  • 0
  • +1
  • +2

[ED] Basic anti-disaster income

State should draw up guidelines about cash payments

Gyeonggi Province has unveiled a plan to pay a disaster-related basic income of 100,000 won ($80) to each resident in April to help them overcome the economic fallout from the coronavirus pandemic. Gyeonggi will be the first local government here to deliver universal payments to all residents.

The payment will be made in voucher that would expire after three months. The province, which earmarked 1.36 trillion won from its disaster management and relief funds, and regional development fund, said its 13.64 million registered residents, a quarter of the country's population, would be eligible for the basic income.

Gyeonggi's basic income plan is drawing attention as the central government is reluctant to adopt the basic income plan due to the financial burden. Providing a basic income is an emergency measure to support households, small business owners and companies financially crippled by the COVID-19 outbreak. There are expectations that it will relieve the economic impact of the coronavirus pandemic a little by encouraging households to spend, which would result in increased sales by the self-employed and companies.

The problem is whether the measure will achieve its intended outcome. Gyeonggi Governor Lee Jae-myung says the basic income plan will generate economic ripple effects, citing a report drawn up by the Gyeonggi Research Institute. Yet it remains to be seen whether his forecast will prove to be correct, given that he appears to have come up with the plan hurriedly to strengthen his political position as a strong potential presidential hopeful.

Controversy over fairness will also be inevitable as other provincial or municipal governments will raise questions about why only Gyeonggi residents can get cash at a time when the whole country is enduring unprecedented difficulties. Several other local governments have recently announced plans to provide basic relief income selectively for people in need. The central government should draw up guidelines concerning the disaster-related basic income as soon as possible.



State should draw up guidelines about cash payments

Gyeonggi Province has unveiled a plan to pay a disaster-related basic income of 100,000 won ($80) to each resident in April to help them overcome the economic fallout from the coronavirus pandemic. Gyeonggi will be the first local government here to deliver universal payments to all residents.

The payment will be made in voucher that would expire after three months. The province, which earmarked 1.36 trillion won from its disaster management and relief funds, and regional development fund, said its 13.64 million registered residents, a quarter of the country's population, would be eligible for the basic income.

Gyeonggi's basic income plan is drawing attention as the central government is reluctant to adopt the basic income plan due to the financial burden. Providing a basic income is an emergency measure to support households, small business owners and companies financially crippled by the COVID-19 outbreak. There are expectations that it will relieve the economic impact of the coronavirus pandemic a little by encouraging households to spend, which would result in increased sales by the self-employed and companies.

The problem is whether the measure will achieve its intended outcome. Gyeonggi Governor Lee Jae-myung says the basic income plan will generate economic ripple effects, citing a report drawn up by the Gyeonggi Research Institute. Yet it remains to be seen whether his forecast will prove to be correct, given that he appears to have come up with the plan hurriedly to strengthen his political position as a strong potential presidential hopeful.

Controversy over fairness will also be inevitable as other provincial or municipal governments will raise questions about why only Gyeonggi residents can get cash at a time when the whole country is enduring unprecedented difficulties. Several other local governments have recently announced plans to provide basic relief income selectively for people in need. The central government should draw up guidelines concerning the disaster-related basic income as soon as possible.





X
CLOSE

Top 10 Stories

go top LETTER

The Korea Times

Sign up for eNewsletter