Rep. Choo Kyung-ho, right, floor leader of the ruling People Power Party, speaks during the party's meeting at the National Assembly in Seoul, Friday. Yonhap
A political feud grows as the opposition party is unilaterally pushing for a bill on cash handouts, a scheme the rival ruling party slams as an unconstitutional, populist move that would fuel inflation.
Rep. Choo Kyung-ho, floor leader of the ruling People Power Party (PPP), blasted the liberal Democratic Party of Korea (DPK), Friday, for pressing with the idea of offering all citizens gift certificates worth between 250,000 won ($180) and 350,000 won.
“While its effect of stimulating the economy is limited, it would bring higher prices as well as higher key interest rates, which then would increase financial burdens on ordinary people and companies,” Choo said during his party's meeting at the National Assembly in Seoul. “It could be compared to dropping money, derived from the national debt, from a flying helicopter. Who is supposed to pay off the debt of 11 trillion won? It is tantamount to dumping that bomb (of debt) on young people and future generations, which is irresponsible populism.”
The criticism came a day after the bill was approved at the Assembly's opposition-controlled Safety and Public Administration Committee. Should the bill get approval at the Legislation and Judiciary Committee, also controlled by opposition parties, it is likely to be passed in a plenary session as early as next week. But President Yoon Suk Yeol is highly expected to stop it in the end with his veto right ― a pattern demonstrated over the past two years in the face of a majority opposition in the Assembly.
Ruling party lawmakers said the DPK's populist intent is not the only issue with the bill. They said it is not consistent with the Constitution, which stipulates that the power to plan the nation's budget lies with the executive branch of government.
“The Constitution says that the executive branch of the government has the right to budget planning and disallows the Assembly's budget increase without its consent,” said Rep. Jeong Jeom-sig, the PPP's chief policymaker. “Are the main opposition party and former Chairman Rep. Lee (Jae-myung) above the Constitution?”
They accused the DPK's idea of shortsightedness, saying it would “ruin the economy” at a time when many people are already reeling from crippling inflation, driven partly by “free money” handed out during the COVID-19 pandemic.
But DPK lawmakers rejected the argument, saying their policy would encourage spending at a time when the market is desperate for higher levels of consumer confidence.
“So many small business owners are on the brink of bankruptcy,” Rep. Mo Gyeong-jong of the DPK said during the committee meeting the previous day. “The government should take it as a pump-priming policy that would help stimulate the economy through more spending by consumers and, if necessary, propose a supplementary budget for it.”
According to a survey released in May by Gallup Korea, 51 percent of respondents said they would oppose cash handouts, while 43 percent said they would support it.
Yet among DPK supporters, the rate of support was 68 percent, compared with a 79 percent rejection rate among PPP supporters.