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South Korean President Moon Jae-in attends a meeting of the emergency economic council at the Blue House on Mar. 19. (Blue House photo pool)

The Blue House is giving a little more thought to the possibility of introducing a basic disaster allowance, which would mean making cash payments to every citizen in the country. Although government aid in the short term will focus on those who’ve been hardest hit by COVID-19, including SMEs, small business owners, and the self-employed, the Blue House has indicated that it could provide universal cash assistance if the public approves.

When asked on Thursday whether basic disaster allowance or selective aid for economically vulnerable sectors had been discussed during a meeting of the emergency economic council, a senior official at the Blue House said that officials had “talked about support for vulnerable sectors.”

“Those ideas are matters that should be considered in the future, depending on the domestic and international economic situation, efforts made by local governments, and the degree of public acceptance,” the official went on to say.

In effect, the government emphasized that it’s focusing on supporting the sectors facing the greatest hardship while laying out the conditions for introducing a basic disaster allowance. The implication is that, if public opinion shifts toward the idea that paying a certain amount of cash to all citizens, regardless of their income level, to revitalize the domestic economy could help the country overcome the COVID-19 crisis, the government could take that measure.

“We should be paying attention to the mention of public acceptance. That means the government could decide to pay out a disaster allowance either selectively, to the economically vulnerable, or universally, to all citizens, provided that the measure has the consent of the public,” another Blue House official said. There’s a growing push in the Blue House for the government to consider adopting a basic disaster allowance given changing circumstances, including the fact that the US and Japan plan to implement cash handouts.

But sources say that the Blue House is still grappling with the question of whether a basic disaster allowance is the best way to stimulate the domestic economy and help economically vulnerable groups. There could be public resistance if the measures are perceived as a populist move. And in the case of an emergency disaster allowance or livelihood assistance delivered selectively to certain vulnerable groups, there’s the question of how to equitably decide who gets the aid.

“We’re open to all possibilities, and the question will ultimately be decided in consideration of the global economy, the domestic economic situation, and public acceptance. But officials in the emergency economic meeting will probably decide not to miss this opportunity.

Another possibility is passing a second revised supplementary budget. Some think the president should make use of his authority to take emergency fiscal measures given the difficulty of convening the National Assembly in May, after the parliamentary elections, when there will be a mixture of re-elected and defeated lawmakers. But if the need for another supplementary budget becomes more grave and public pressure mounts on lawmakers to fulfill their responsibility, such a budget bill could be passed even during a May session, other analysts predict.

By Seong Yeon-cheol, staff reporter

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