The government has decided to distribute recovery consumption coupons to all citizens. However, it plans to provide at least $100 less to the 'top 10%' group compared to other groups. The main ministry, the Ministry of the Interior and Safety, is reportedly grappling with the question of 'how to define the top 10%' as of the 27th.
The recovery consumption coupons for all citizens will be distributed in two rounds. In the first round, every citizen will receive between $150 and $400, and in the second round, $100 will be additionally given to the remaining 90% after filtering out the 'top 10%' group. The universal support in the first round can be delivered quickly, but there are concerns that the second payment might be significantly delayed. Within the Ministry of the Interior and Safety, there are discussions suggesting that 'we may need to increase the number of staff in charge from the second round onward.'
The problem is that there is no clear indicator that can delineate the top 10% all at once. Health insurance premiums are considered a somewhat referable realistic standard, but even that has its shortcomings. Unlike regional subscribers, whose health insurance premiums are determined by considering all income and assets, workplace subscribers only reflect earned income, necessitating a separate standard. Additionally, it is not easy to identify cases of individuals whose income has sharply decreased, such as those who closed their businesses this year after operating last year.
The government plans to base its framework on the model used in 2021 to select recipients of the 'COVID-19 relief fund' (88% of citizens received it). However, due to the passage of four years, the cutoff line for health insurance premiums is expected to be higher than it was then.
According to 2021 standards, for a household with one member, those with workplace or regional health insurance premiums set below $170 would qualify for support as of June that year. This amount corresponded to an annual earned income of $58,000 for workplace subscribers. Even if someone immediately meets these criteria, individuals with assets exceeding $9 million in property tax assessment in 2020 or financial income above $20,000, which places them under comprehensive taxation for financial income, have been 'cut off.'
Despite having established such standards with difficulty, appeals flooded in. At that time, a total of about 460,000 appeals were filed. The most common reason was health insurance premium adjustments, accounting for 190,000 cases (41.2%), followed by changes in family composition (167,000 cases, 36.3%), and appeals regarding property tax and financial income standards (14,000 cases, 3%). About 70% of these appeals were accepted, leading to an additional payment of $76.9 billion.
Welfare experts express concerns that similar controversies will arise this year as well. This is because since 2021, there has been no system established for distributing support funds to all citizens. Choi Hyun-soo, a researcher at the Korea Institute for Health and Social Affairs (KIHASA), noted, "The administrative cost incurred from screening processes and handling appeals may outweigh the $400 million saved by giving the top 10% $100 less." In fact, a civil servant in the Ministry of the Interior and Safety hinted, "Everyone is quietly observing the atmosphere, fearing that they will be pulled into the task force for the recovery consumption coupons, which is likely to be fraught with difficulties."
To prevent such confusion, a proposal was made four years ago to 'distribute to all citizens at first, and recoup taxes from high-income earners based on the tax rate during year-end settlement.' However, it is unlikely that this will materialize this year either. A government official stated, "Currently, we are not considering a universal support followed by recoupment method." Researcher Choi said, "There seems to be nothing learned from past experiences, and it's essential to create a system for targeted recoupment this time for long-term benefits."
Meanwhile, the supplementary budget containing the 13 trillion won recovery consumption coupon program is currently under review by the National Assembly. President Lee Jae-myung stated during his first address to the National Assembly since taking office on the 26th, "The recovery of livelihoods directly correlates with the recovery of the economy," and urged for collaboration to expedite the passage of the supplementary budget to avoid missing the golden time for economic recovery.