Gyeonggi Province's Disaster Basic Income Introduced as 'Post-Corona Policy' at National Research Institutes Forum

[Suwon Ilbo=Reporter Park No-hun] Disaster relief funds, including Gyeonggi Province's disaster basic income, were introduced as a 'post-corona policy' at the annual research achievement presentation by national research institutes.

Amid the economic crisis caused by COVID-19, the policy garnered attention for its effect in stimulating consumption, and analysis shows it achieved high resident satisfaction.

The Council of National Research Institutes held the '2020 Research Achievement Presentation and Post-Corona Policy Forum' online over two days, May 17-18.

Hosted by the Council of National Research Institutes and the Korea Local Administration Research Institute, the presentation and forum was designed as a venue for each provincial and municipal research institute to present their local policy research achievements from the previous year and share field perspectives.

The first day forum on May 17 was held under the theme of 'Regional Policy in the Post-Corona Era.'

With Lee Han-joo, director of Gyeonggi Research Institute and chair of the Council of National Research Institutes, serving as moderator, presentations on diverse topics from eight research institutes followed.

First, Lee Eon-sang, research fellow at Gyeongnam Research Institute, presented on the topic of <Comparative Study of COVID-19 Local Government Emergency Disaster Relief Funds>.

Gyeongnam Research Institute compared six local governments that distributed emergency disaster relief funds in the early stages of COVID-19 last year: Gyeonggi Province, Seoul, South Gyeongsang Province, Jeonju of North Jeolla Province, Ulju County of Ulsan, and Goseong County of South Gyeongsang Province.

Gyeongnam Research Institute identified local government leaders' leadership in overcoming COVID-19 damage as the background for introducing emergency disaster relief funds.

The institute also evaluated that there was influence from pioneering regions, such as when Gyeonggi Province Governor Lee Jae-myung first proposed disaster basic income payments among local governments in March last year.

The research highlighted residents' high satisfaction and support for low-income households' livelihoods and revitalization of the local economy as achievements of the emergency disaster relief funds.

In particular, in cases of universal distribution to all residents like Gyeonggi Province, while the fiscal burden is large, the institute explained that such approaches possess comprehensiveness, efficiency, and promptness.

The second day featured the '2020 Research Achievement Presentation by Provincial and Municipal Research Institutes' divided into four sessions.

Kim Eul-sik, research fellow at Gyeonggi Research Institute, presented in the third session on the topic of <Consumption Stimulation Effect of the First Disaster Relief Funds>.

Research fellow Kim Eul-sik emphasized, "Low-income groups, self-employed individuals, and irregular workers—discussed as selective recipients—may be appropriate for redistribution purposes but do not guarantee results for consumption stimulation purposes. When the goal is consumption stimulation, universal distribution (such as Gyeonggi Province's disaster basic income) should be considered."

He added, "The disaster relief fund method that restricted consumption to small business shops (through local currency format) increased the usage rate of small business establishments, and as the support amount increased, the marginal propensity to consume rose, showing that disaster relief funds of a certain scale or larger are necessary."

The Council of National Research Institutes was established in 1993 to facilitate information exchange among local research institutes and mutual utilization of research achievements.

The council has 15 member organizations including Gyeonggi Research Institute, Seoul Institute, Busan Institute of Finance, Incheon Institute, Daegu-Gyeongbuk Research Institute, Daejeon-Sejong Research Institute, Gwangju-Jeonnam Research Institute, Ulsan Institute, Gangwon Institute, North Chungcheong Institute, South Chungcheong Institute, Gyeongnam Institute, North Jeolla Institute, Jeju Institute, and Korea Local Tax Research Institute.