LEE WITHDRAWS RELIEF FUND PROPOSITION

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The Democratic Party clashed with the central government recently over its presidential candidate's proposition to provide universal disaster relief subsidies. On Thursday, Lee Jae-myung withdrew his proposition. His decision apparently stems from the government's financial situation, strong opposition from the public and conflict between the ruling party and the central government. Critics say Lee should have taken those factors into consideration in the first place.

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DP presidential candidate Lee Jae-myung has scrapped his proposition to provide disaster relief subsidies to all citizens early next year. His decision comes 20 days after he first proposed that all citizens should receive additional subsidies as compensation and consolation.

[Soundbite] Lee Jae-myung(DP Presidential Candidate) : "I am afraid that the honorable idea of providing subsidies to the people with a sense of urgency could be damaged due to opposition from rival parties and the government's stance."

Lee repeated, although he still believes that universal subsidies provided in the form of vouchers to consumers could produce a dual effect, he would scrap his proposition if funding was not provided swiftly to those who needed it the most. He is urging the rival parties to discuss raising the 100,000-won minimum limit of compensation for losses and issuing more local currencies compared to this year. Lee's decision was largely influenced by the Democratic Party's conclusion that there are not enough funds for providing disaster relief subsidies as additional taxes will be collected later than expected.

[Soundbite] Park Wan-joo(Democratic Party) : "Universal COVID-19 relief funds would require KRW 8-10 tn, but not enough taxes have been collected to secure that amount and it took some time to confirm that."

Strong opposition from the public and a possible backlash that may result from the unilateral payment of universal subsidies without the opposition party's consent also prompted Lee to withdraw his proposition. The ruling party says the decision once again shows Lee's flexibility. However, the fact that the idea of universal subsidies is closely correlated with Lee's signature policy of basic income as well as his hasty push for providing subsidies to all citizens without evaluating the nation's financial situation will inevitably deal a blow to his reputation. The main opposition PPP blasted Lee for his dubious credentials as a presidential candidate, while the Justice Party says more a more prepared and verified leadership is needed.