Gyeonggi Province Governor Lee Jae-myung: We will be providing basic income to all citizens promptly

Governor Lee Jae-myung

Governor Lee Jae-myung

 

By Sang-ki Lee
Founder of AJA and CEO of Asia N

Suwon: South Korea’s Gyeonggi Provincial Government has announced that they will be providing disaster subsidy of about $81 (about 100,000won) per person and $324(400,000won) per household of four people.

The “Gyeonggi Province disaster subsidy”, officially announced by the government on March 24, offers support to all Gyeonggi Province residents, regardless of income or age.

The province, the most populous of South Korea, had a population of 13,265,377, representing about 25% of the population of South Korea, at the end of February. A total of $1,078 million (approximately 1,326 billion won) will be allocated.

Several local governments, including South Gyeongsang, Daejeon and Daegu, have decided to introduce disaster subsidies, but Gyeonggi province is the first to provide subsidy to the entire population.

Gyeonggi Governor Lee Jae-Myeong’s announcement of the introduction of basic subsidy for disasters is expected to play a crucial role in supporting the argument to provide basic income for disasters at the central government level.

With more than 13.26 million people, around 25% of the population, set to benefit, the central government is now in a position to consider it positively.

At the same time, it would make South Korea a role model to foreign countries like US, China, UK and Singapore.

In the United States, economist Paul Krugman had in the past offered a so-called “helicopter drop” proposal as a last resort to lift the economy. This is a method of raising the economy by providing cash to all the people by the “helicopter drop” plan.

Recently, the economy has been severely affected by the COVID- 19 crisis, and US economists have been insisting on the need for a “helicopter drop”.

They include Nicholas Gregory Mankiw, the Robert M. Beren Professor of Economics at Harvard University, and Nouriel Roubini, a Professor of Economics and International Business at New York University Stern School of Business, who predicted the financial crisis.

Indeed, Roubini argues, “Providing all U.S. residents with a helicopter drop at $ 1,000 each will be the most effective policy to mitigate the impact of the economic downturn.”

Gyeonggi Province’s method is indicating “since it is very difficult to select those who need money, and this can cause many problems, we are with the same will as America’s case of giving $ 1,000 to all population as soon as possible, and this can work as a good start.”

Gyeonggi Province was able to reduce time and administrative costs accorded to the classification of the target by providing subsidy to all population.

The most distinctive feature of Gyeonggi Province disaster basic subsidy is that support is provided to all residents.

Precisely, anyone registered as a resident in Gyeonggi province from 12:00 p.m. on March 23 to the date of application will be able to receive it.

Even though the amount is not large, it is expected to make a considerable contribution to income-limited households and promote consumption.

South Gyeongsang Province, Daegu, Daejeon, Gangwon Province and Jeonju city that have adopted, among others, the basic disaster subsidy policy, will provide basic subsidy based on people’s overall income.

However, for Gyeonggi province disaster subsidy, the payment procedure is very simple. You only need to confirm your identity at the administrative welfare center in your district. You can receive the full amount immediately on behalf of all household members.

Disaster income will be paid in local currency that will expire three months after the payment date. The area of use was limited to department stores, marts and supermarkets in the regions of Gyeonggi Province in order to make money circulate in the province.

Gyeonggi Province believes that this will simultaneously contribute to “household support” and “increase in sales of businesses and small businesses.”

“Although it is a small amount and only a one shot, I hope that Gyeonggi Province disaster basic subsidy will trigger a discussion on basic income at the national level and establish a new policy suitable for a new era,” Governor Lee Jae-Myeong said.

The Governor has received public support before and after the introduction of “Gyeonggi-province type basic subsidy” by playing a crucial role in preventing COVID- 19 from spreading.

He led the efforts to minimize outbreaks in Gyeonggi Province through the seizure and closure of the Sincheonji Church that had infected thousands of people in the Daegu, North Gyeongsang Province region through the Daegu assembly in late February.

As of March 25, COVID-19, which has resulted in 403,806 confirmed cases and 18,230 dead in 198 countries worldwide, requires ever more authenticity, wisdom and leadership.

This is why people are paying attention to the Governor of Gyeonggi Province adjacent to Korean capital, Seoul.

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