Yeom Tae-young, Rep. Chair: "Government Must Lay Foundation to Help Nation Weather COVID-19 Crisis"

[Suwon Ilbo=Reporter Seo Dong-young] The Welfare Task Force of the National Association of Mayors and Governors (hereinafter Task Force, Chair Yeom Tae-young, Mayor of Suwon) released an emergency statement on the 23rd regarding emergency financial support to overcome the COVID-19 crisis.

The Task Force requested that the government implement support with nationwide uniformity without regional discrimination, noting that the current approach of each local government acting independently could result in regional disparities and unfair outcomes.

The Task Force explained that various local governments, including Seoul, are currently implementing support with different selection criteria, funding amounts, and payment procedures to overcome economic difficulties caused by COVID-19. The Task Force also noted that several other metropolitan and local governments that empathize with such support are preparing to implement similar systems.

While noting that the proactive efforts of local governments are positive, the Task Force pointed out that this has resulted in a failure to respond consistently and systematically to national issues.

The Task Force also assessed that various problems are emerging, including unreasonable target selection, irrational support amounts, and waste of administrative resources due to complex payment procedures.

The Task Force requested that the central government implement emergency financial support nationwide according to reasonable and unified standards to efficiently resolve the crisis.

Rep. Chair Yeom Tae-young stated, "If the central government implements emergency financial disaster relief to create a foundation for our citizens to overcome the 'COVID-19 barley pass,' local governments, building on this, will work to revitalize the regional economy together with small and medium-sized enterprises and small business owners in the region, and will stably care for the socially vulnerable left in policy blind spots."

The Welfare Task Force of the National Association of Mayors and Governors has proposed since last year a division of roles between the central and local governments, whereby the central government is responsible for universal cash welfare equivalent to the national minimum level, and local governments are responsible for social service policies reflecting regional characteristics.

[Emergency Statement from the Welfare Task Force Regarding COVID-19 Disaster Relief Emergency Financial Support]

A Disaster Affecting All—Support Equitably and Promptly Without Regional Discrimination

COVID-19, which threatened the health and lives of our citizens, now threatens the national economy and people's livelihoods. Small and medium-sized enterprises face management difficulties. Job-vulnerable groups, including irregular workers, daily workers, and temporary workers, are being pushed into massive unemployment and livelihood crises. Struggling small business owners are losing sleep over livelihood expenses and rent concerns.

In such an exceptional crisis, exceptional measures are needed.

Just as governments once distributed relief grain during the barley pass season to help the people, public opinion is spreading that the government must implement emergency financial disaster relief to help the nation weather the unprecedented national disaster of the "COVID-19 barley pass."

Some local governments are already proactively implementing cash support policies to overcome the disaster. Seoul plans to provide 300,000 to 500,000 won per month in emergency livelihood support to 1.17 million households with income at or below 100 percent of the median income. South Chungcheong plans to provide 1 million won per household to 150,000 people, including local small business owners, transportation industry workers, and low-income groups.

Additionally, Jeonju among basic local governments decided to support approximately 50,000 vulnerable people with income at or below 80 percent of the median income with 527,000 won per person, while Hwaseong plans to provide an average of 2 million won each to 33,000 small business owners whose sales decreased by 10 percent or less compared to the previous year. In addition, Daegu, South Gyeongsang, Gangwon, and Pohang are planning or implementing emergency financial disaster relief.

The determination of local governments to weather the "COVID-19 barley pass" is highly commendable. However, we must not overlook the fact that this creates support disparities among local governments. Local governments that have decided on emergency financial support generally have better fiscal conditions than other regions.

Among all heads of 17 metropolitan and 226 basic local governments, not a single one would be unwilling to provide disaster allowances to citizens during such a national crisis. However, most local governments are in fiscal situations where they cannot afford to do so. That is why it weighs even more heavily on our hearts.

Matters related to citizens' lives, bodies, and property must be guaranteed equal benefits nationwide without regional discrimination. COVID-19 is a national disaster that all citizens are experiencing equally. If we continue with an approach in which only local governments with favorable fiscal conditions respond through independent action, it will unintentionally result in regional discrimination and unfair outcomes.

Therefore, we urge the central government to present more responsible fiscal support measures. Emergency financial disaster relief must be implemented nationwide according to reasonable and unified standards. The scale and methods of support can be reasonably adjusted based on our economy's fundamentals and fiscal condition. However, this is an agenda that can only be discussed after the central government makes a decision.

The Welfare Task Force under the National Association of Mayors and Governors has proposed since last year a division of welfare and fiscal roles between the central and local governments, whereby cash welfare equivalent to the national minimum level is implemented nationwide without discrimination under the responsibility of the central government, and local governments are responsible for implementing social service policies reflecting regional characteristics.

This principle must be applied even more clearly at the present time, as we confront an unprecedented national disaster. If the central government implements emergency financial disaster relief to create a foundation for our citizens to overcome the "COVID-19 barley pass," local governments will, building on this, work to revitalize the regional economy together with small and medium-sized enterprises and small business owners in the region, and will stably care for the socially vulnerable left in policy blind spots.

Going forward, local governments belonging to the Welfare Task Force pledge to actively cooperate with the central government's measures to overcome the COVID-19 disaster and strongly urge the central government once again to make an exceptional decision for exceptional measures to overcome this crisis.

March 23, 2020

National Association of Mayors, Governors, and District Heads Welfare Task Force

(Chair Yeom Tae-young, Mayor of Suwon; Secretary General Jeong Won-o, District Head of Seongdong-gu)