4TH DISASTER RELIEF BUDGET

[Anchor Lead]

The government and the ruling party are at odds over the fourth disaster relief budget. The Democratic Party is pushing for providing subsidies for all citizens as well as for certain groups, and has even mentioned that the economy and finance minister should step down. However, the minister himself refuses to change his stance.

[Pkg]

The Democratic Party has decided to push ahead with its leader's proposal to provide the fourth round of disaster relief funds geared towards all citizens as well as to select groups.

[Soundbite] Lee Nak-yon(Chairman, Democratic Party) : "The owners of the money are the people. It is only right to spend money to help the public."

During a meeting the party reportedly even pressured the Finance chief to step down. Hong Nam-ki maintains his stance, that providing both universal and selective subsidies simultaneously would be difficult.

[Soundbite] Hong Nam-ki(Minister of Economy and Finance) : "I'm concerned the differences in opinion could be misunderstood as the final decision."

The Democratic Party hopes for a 20 trillion won budget. But things are hard to predict at this point. The fourth disaster relief budget is more than just about consoling the public. It will serve as compensation for business losses. Therefore, the amount should be large enough to cover losses sustained by small businesses during the pandemic. Even if the subsidies are paid out in March or April, losses that could occur prior to that should also be taken into account.

[Soundbite] Pres. Moon Jae-in(Feb. 1) : "We must think of measures that can compensate for losses, including those that may occur before the compensation is paid out."

The final decision on universal subsidies demanded by the ruling party will likely be made only after the scope of subsidies for those who need them most is finalized. The decisive factor will be the COVID-19 situation in the nation. If the situation improves early on, the ruling party chair's proposal will likely sound more feasible. Otherwise, the situation will play out in favor of the economy minister's idea. Senior presidential aide for political affairs Choi Jae-sung has brushed away speculations of another feud between the government and the ruling party by pointing out that discussions on the matter have just begun and such disagreements are not unusual.