Lee Jae-myung Proposes Second Disaster Relief Payment of 200,000 Won Per Capita
Suwon NewsPublished 2020.06.02 06:05
Gyeonggi Province proposes state budget recommendations for third supplementary national budget200,000 won per capita to 51.84 million people requires 10.37 trillion won budget allocationGyeonggi Province needs 2.66 trillion won for 13.31 million residents
[Suwon Ilbo=Park No-hun Reporter] Gyeonggi Province announced on the 2nd that it had recommended to the government a budget allocation of 10.37 trillion won necessary to provide second disaster relief payments on the 29th of last month.
According to Gyeonggi Province's proposal, the province takes the position that an "second emergency disaster relief payment project" is necessary to stabilize the livelihoods of citizens facing difficulties due to prolonged COVID-19 and revitalize the local economy, and that an additional 200,000 won per capita should be paid to citizens.
The province calculated that paying 200,000 won per capita to 51.84 million people would require 10.37 trillion won, and Gyeonggi Province would need 2.66 trillion won based on 13.31 million residents.
Gyeonggi Province Governor Lee Jae-myung recently stated in a media interview, "Even if COVID-19 ends, the economy may remain poor for a considerable period, so naturally we should provide (disaster basic income) at least two or three more times," and argued, "To smoothly facilitate economic circulation in the most efficient way, we need to strengthen demand rather than supply for normal circulation. Providing disaster basic income two or three times would be much more helpful."
In fact, various evidence shows that Gyeonggi Province's disaster basic income is revitalizing the local economy. First, according to a Korea Credit Data survey examining the year-on-year card sales ratio of self-employed workers in major regions nationwide, Gyeonggi Province rose from 95% in the third week of April (April 13-19) to 107% in the third week of May (May 11-17) week by week. In the third week of May, card sales actually increased compared to last year, indicating that Gyeonggi Province experienced local economic revitalization effects. This contrasts with other metropolitan autonomous regions that provided selective support during the same period, which showed fluctuating or low year-on-year card sales ratios.
This trend also appeared in the sales status of disaster basic income-eligible merchants in Gyeonggi Province compiled by Shinhan Card. When the sales of disaster basic income-eligible merchants in Gyeonggi Province on March 1-7 were set at 100, sales increased by 24% to 124 on April 22-28 when disaster basic income usage began in earnest. This contrasts with merchants that cannot use disaster basic income, which showed an increase rate of only 17% during the same period.
The local economic revitalization effects of Gyeonggi Province's disaster basic income were clearly revealed in a survey of provincial residents. When Gyeonggi Province commissioned Korea Research on the 15th-16th to survey 1,000 provincial residents on the effects and satisfaction of Gyeonggi Province's disaster basic income, 80% responded that they "used neighborhood stores instead of their usual large marts," and experienced changes in consumption patterns such as "using new neighborhood stores they had never used before" (33%) and "visiting traditional markets" (34%).
In particular, 85% of provincial residents who experienced such consumption pattern changes responded that they "have the intention to revisit neighborhood stores or traditional markets" even without the purpose of using Gyeonggi Province's disaster basic income. The result reveals that Gyeonggi Province's disaster basic income not only affects self-employed workers' sales increases amid the COVID-19 crisis, but also has effects on sustainable alleyway commercial district revitalization such as attracting new customers.
Meanwhile, in addition to the allocation of second disaster relief payments related to this third supplementary national budget, Gyeonggi Province recommended 39.66 billion won in national treasury funds for a total of 60 projects, including 8.2 billion won to promote the establishment of a bio startup campus and 100 million won to build a labor consultation database.
The province calculated that paying 200,000 won per capita to 51.84 million people would require 10.37 trillion won, and Gyeonggi Province would need 2.66 trillion won based on 13.31 million residents.
Gyeonggi Province Governor Lee Jae-myung recently stated in a media interview, "Even if COVID-19 ends, the economy may remain poor for a considerable period, so naturally we should provide (disaster basic income) at least two or three more times," and argued, "To smoothly facilitate economic circulation in the most efficient way, we need to strengthen demand rather than supply for normal circulation. Providing disaster basic income two or three times would be much more helpful."
In fact, various evidence shows that Gyeonggi Province's disaster basic income is revitalizing the local economy. First, according to a Korea Credit Data survey examining the year-on-year card sales ratio of self-employed workers in major regions nationwide, Gyeonggi Province rose from 95% in the third week of April (April 13-19) to 107% in the third week of May (May 11-17) week by week. In the third week of May, card sales actually increased compared to last year, indicating that Gyeonggi Province experienced local economic revitalization effects. This contrasts with other metropolitan autonomous regions that provided selective support during the same period, which showed fluctuating or low year-on-year card sales ratios.
This trend also appeared in the sales status of disaster basic income-eligible merchants in Gyeonggi Province compiled by Shinhan Card. When the sales of disaster basic income-eligible merchants in Gyeonggi Province on March 1-7 were set at 100, sales increased by 24% to 124 on April 22-28 when disaster basic income usage began in earnest. This contrasts with merchants that cannot use disaster basic income, which showed an increase rate of only 17% during the same period.
The local economic revitalization effects of Gyeonggi Province's disaster basic income were clearly revealed in a survey of provincial residents. When Gyeonggi Province commissioned Korea Research on the 15th-16th to survey 1,000 provincial residents on the effects and satisfaction of Gyeonggi Province's disaster basic income, 80% responded that they "used neighborhood stores instead of their usual large marts," and experienced changes in consumption patterns such as "using new neighborhood stores they had never used before" (33%) and "visiting traditional markets" (34%).
In particular, 85% of provincial residents who experienced such consumption pattern changes responded that they "have the intention to revisit neighborhood stores or traditional markets" even without the purpose of using Gyeonggi Province's disaster basic income. The result reveals that Gyeonggi Province's disaster basic income not only affects self-employed workers' sales increases amid the COVID-19 crisis, but also has effects on sustainable alleyway commercial district revitalization such as attracting new customers.
Meanwhile, in addition to the allocation of second disaster relief payments related to this third supplementary national budget, Gyeonggi Province recommended 39.66 billion won in national treasury funds for a total of 60 projects, including 8.2 billion won to promote the establishment of a bio startup campus and 100 million won to build a labor consultation database.
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