DEBATE OVER COVID-19 RELIEF PAYOUTS

[Anchor Lead]

The issue of universal COVID-19 relief payouts is now a political hot potato. While the ruling party’s presidential candidate Lee Jae-myung is pushing for greater pandemic aid with the party leadership’s support, the plan is facing a strong objection from the opposition bloc. Even many ruling party and government officials are calling for a cautious approach.

[Pkg]

​The Democratic Party’s presidential candidate Lee Jae-myung reiterated his determination to push for more universal COVID-19 relief payouts. After putting forward the proposal and presenting a detailed amount, he pressured hesitant financial authorities to go along with his plan, calling it a matter of a resolution.

[Soundbite] Lee Jae-myung(DP Presidential Candidate) : "When public opinions form, it is the government officials and politicians’ duty to follow them."

The ruling party’s leadership changed its position for the first time on the matter and promised to lend support to the ruling party's presidential candidate..

[Soundbite] Song Young-gil(DP Chair) : "It is predicted an additional tax revenue of some KRW 10 tn will be collected by year’s end. Based on this excess fund, we will work to give sufficient support to the people."

Both the candidate and party leadership cited the government’s excess tax revenue as grounds for greater pandemic-related aid. In July, the government adjusted its tax revenue target to some 314 trillion won, which is up over 31 trillion won from the initial estimation. There are also predictions that more than ten trillion won will be additionally collected due to an increase in the accumulated transfer tax. However, it is clear that financial authorities don't agree with Lee. Finance Minister Hong Nam-ki avoided answering a related question at the G20 Summit. Some people are opposing Lee’s proposal, saying COVID-19 relief funds should be mainly paid to those most in need, in the low income bracket. Even ruling party officials are expressing concerns, saying it would be difficult to immediately appropriate a necessary budget for next year and the candidate should have discussed the issue first with the party. The main opposition People Power Party criticized Lee for making a populist move with the 2022 presidential election four months away. The minor opposition Justice Party disapproved the ruling party candidate’s proposal as well, calling it a political tactic to buy votes. This issue will likely stir a heated debate in the upcoming deliberation of budget proposals for next year.