It has been reported that the nationwide support fund promised by President Lee Jae-myung during the presidential campaign is being seriously considered within the government as a means of providing differentiated support based on income levels. The plan involves giving more to vulnerable groups and less to high-income earners, based on a benchmark of 250,000 won for all citizens.
On the 16th, according to the Democratic Party of Korea and the Ministry of Economy and Finance, the party and government are preparing a plan to provide consumer recovery coupons, targeting all citizens, in the form of regional love gift certificates (regional currency) with differentiated payments based on income brackets.
The current plan being formulated by the government is to distribute the nationwide support fund in two stages.
Initially, to stimulate consumer spending quickly, a basic amount of 150,000 won will be given to all citizens, while 300,000 won will be given to near-poor households and 400,000 won to basic livelihood recipients.
Subsequently, an additional 100,000 won will be given to all citizens except for the top 10% based on health insurance premiums. When combined, the top 10% will receive 150,000 won, ordinary citizens will receive 250,000 won, near-poor households will receive 400,000 won, and basic livelihood recipients will receive 500,000 won.
Within and outside the government, there are concerns regarding the deterioration of financial soundness due to the supplementary budget formation, leading to assessments that this 'targeted support' method is a policy decision aimed at maximizing the effects of fiscal expenditure.
However, within the ruling party, there is an emphasis on 'universal support,' so the classification of classes and the amounts distributed per class may change during the final negotiations between the party and government. In this regard, the Ministry of Economy and Finance noted that, 'Currently, discussions with relevant ministries are underway regarding the supplementary budget proposal,' and stated, 'No specific details have been determined regarding the consumer recovery support fund or any related projects.'
The government is expected to finalize and announce the supplementary budget plan containing the consumer recovery support fund soon.