Lee Jae-myung, "Providing Third Round of Disaster Basic Income to All Gyeonggi Province Residents"

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province will provide the third round of disaster basic income to residents excluded from the central government's fifth round of disaster relief funds.

Accordingly, all Gyeonggi Province residents will receive disaster basic income.

Governor Lee Jae-myung held a press conference on the "Third Round Disaster Basic Income Payment to All Residents" at Gyeonggi Province Government building on the 13th, saying "Gyeonggi Province, considering the rationale for universal disaster relief provision and economic effects, intends to provide the third round of Gyeonggi Province disaster basic income to all residents, including those excluded from the government's fifth round of disaster relief funds."

Prior to announcing the third round disaster basic income, Governor Lee said "The government has decided to provide the fifth round of disaster relief funds. We anticipate this will be a timely boost of vitality to households and people's lives, which have been drying up due to the COVID-19 pandemic, and we strongly welcome it," and added "Gyeonggi Province and municipal governments will each bear 10 percent of the government's 2.96 trillion won in disaster relief funds—296 billion won each. Following government policy, Gyeonggi Province will carefully prepare to ensure the fifth round of disaster relief funds are executed without delay."

He then mentioned the joint statement on "100% Disaster Relief Payment" made by five cities including Goyang, Gwangmyeong, Anseong, Guri, and Paju in late July, and subsequently the recommendations from the Gyeonggi Province Mayors and Governors Association and the Democratic Party delegation of the Gyeonggi Province Council for providing disaster basic income to all residents. He explained the decision process, saying "Based on these recommendations from municipal governments, cities, and the provincial council, we intend to provide disaster relief funds to all residents."

In accordance with the provincial council's request, the third round disaster basic income will in principle be funded 90% by the province and 10% by municipal governments.

For municipal governments where transfer tax revenues fall short of the central government's matching amount—such as Suwon, Yongin, Seongnam, Hwaseong, Siheung, and Hanam—the province will exceptionally fully cover the deficit.

In consideration of municipal governments that oppose universal payment to all residents, 90% payment without municipal government matching is also permitted based on municipal government discretion.

Additionally, in consideration of municipal governments' financial difficulties, approximately 600 billion won in adjusted grants to local governments from excess tax revenues will be early distributed to municipal governments.

As a result, Gyeonggi Province will bear 373.6 billion won and municipal governments 41.5 billion won.

Regarding the background of providing the third round disaster basic income, Governor Lee emphasized "All people are experiencing damage from COVID-19, though to varying degrees. The K-quarantine that the Republic of Korea takes pride in has also been achieved through the active cooperation and sacrifice of all people," and stated "All citizens who suffered together, actively cooperated with government quarantine measures, and shared the heavy burden must be fairly compensated."

He continued, "Disaster basic income is not simply a welfare policy but an economic policy that increases residents' disposable income to promote consumption, and provides it in the form of local currency with restricted usage and usage periods to revitalize the alleyway commercial districts, the capillaries of our economy," and said "Including residents excluded from support due to financial constraints as additional support targets while executing disaster relief funds is supplementing and expanding government policy, which is in line with the essence of local autonomy."

Regarding some political circles' criticism of providing disaster basic income to all residents due to fairness concerns with regions not receiving disaster basic income and Gyeonggi Province's fiscal soundness, Governor Lee stated "Policy is not truth, so it inevitably has both merits and drawbacks and both support and opposition, and claims and alternatives different from Gyeonggi Province's position should likewise be respected," and added "However, we ask for your understanding that this difference is precisely the reason we practice local autonomy."

Responding to voices opposing excessive local government financial burden, he said "Opposition to payment based on fiscal burden is not justified at all," and explained "So far, excess tax revenues from real estate transaction taxes and local consumption taxes have reached 1.7 trillion won, and among these excess revenues, Gyeonggi Province's share is more than enough to provide payments to all residents. There is absolutely no increase in residents' burden through local bond issuance or fund borrowing, and there is no need to touch the existing budget."

Meanwhile, Gyeonggi Province has provided 100,000 won per person in disaster basic income to all Gyeonggi Province residents on two occasions—in April of last year and in February this year.