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Gyeonggi Gov. Lee Jae-myung announces a basic disaster allowance plan at the Gyeonggi Provincial Office on Mar. 24. (Yonhap News)

As part of their response to the novel coronavirus outbreak, local governments in South Korea have been individually announcing plans to pay “basic disaster allowance” to residents. This appears to reflect growing popular support for financial disaster relief amid an unprecedented crisis where many are fearful that they might “starve to death before the coronavirus gets us.” At the same time, the individual pursuit of different systems by respective local governments had led to questions over fairness and potential confusion. The central government should move quickly to develop guidelines to head off any unnecessary controversy.

Gyeonggi Gov. Lee Jae-myung announced on Mar. 24 that the province would be “paying a ‘Gyeonggi Province basic disaster allowance of 100,000 won [US$81.37] each to all 13.26 million residents of the province” at a total cost of 1.3 trillion won (US$1.06 billion). North Chungcheong Province is providing 400,000-600,000 won (US$325.52-488.28) each in “emergency disaster living expenses” to 238,000 households earning less than the median income, at a total cost of 105.5 billion won (US$85.86 million). Gwangju Metropolitan City plans to provide 300,000-500,000 won (US$244.09-406.81) each in “emergency living funds” to 260,000 households earning less than the median income, at a total cost of 259.2 billion won (US$210.93 million). South Jeolla Province is providing 300,000-500,000 won (US$244.09-406.81) each in “emergency living costs” to 320,000 households earning less than the median income, at a total cost of 128 billion won (US$104.06 million).

This means 17 local governments have followed Jeonju’s lead in implementing a disaster allowance. That number appears poised to grow as the outbreak persists. The aim of the disaster allowance is to provide financial stability to South Koreans who are struggling with their livelihood amid the outbreak and to support small businesses that have been directly impacted by falling sales. Such an allowance enjoys widespread support, with a majority of citizens expressing approval. A survey recently administered by Gyeonggi Province showed 78% of respondents agreeing that a basic disaster allowance was “necessary.” Around the world, the US and other countries are scrambling to provide cash support through emergency measures.

The problem is that every local government’s plan is different. Differences in the scope and targets of support could easily give rise to questions over fairness. Gyeonggi could also face controversy over its decision to issue “basic income” payments to all of its residents. Other local governments have only been supporting low-income residents, using median income as their yardstick. Even there, the approaches have differed: the cutoff is 100% of the median income in Seoul, but 80% in Jeonju. In terms of the amount of support, Gyeonggi is providing 100,000 won (US$81.35) per person, while Jeonju’s amount is over five times higher at 527,000 won (US$428.71). Even the names are different: “basic disaster income,” “emergency disaster living expenses,” and so on.

The central government has been supportive of these aims but cautious about implementation. For now, it appears likely to focus on selective support for vulnerable demographics. But with more local governments adopting basic allowances, it isn’t good to have it sending an inconsistent message by neglecting support. As the debate deepens, the very intent of the disaster allowance could end up being compromised. It may be worth actively considering having the central government take the next step and provide comprehensive payments.

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