Youth employment expenses-care expenses, etc. ‘Selection pay’ to ‘Serial referee support’

President Moon Jae-in is attending an emergency economic meeting held at the Blue House on the morning of the 10th. President Moon said in a closed debate that day, “speedy execution is the key” and called for speedy execution. of the fourth supplementary budget (additional budget) five times. From left to right, President Roh Young-min, President Moon, and Hong Nam-ki’s Deputy Prime Minister for the Economy and Minister for Strategy and Finance. Photographic reporters of the Blue House

The reason the government launched a 7.8 trillion won “ personalized emergency disaster support package ” on the 10th was because the budget was limited and it was determined to focus on supporting the vulnerable groups of the new coronavirus infection (Corona 19). However, looking at the policy aspect, it is assessed that the original purpose of ‘personalization’ has become unclear because there are many measures that come close to universal payment, such as communication fees and employment support fees. youth. The originally planned selective payment is said to have been changed to the previous payment.

Some point out that it is a waste of budget for contemplation that it is difficult to expect not only economic effects such as preservation of income and promotion of consumption, but even emergency relief effects, as the government tries to distribute it to the public in full view of the public opinion.

○ Up to 2 million won for small businesses affected by the coronavirus

The government’s biggest effort in this countermeasure is supporting small business owners whose business hours are limited or unavailable due to Corona 19. The government allocated about 41% of the total amount of support, or KRW 3.2 billion, to the “New Hope Fund for Small Businesses.” The new desired fund for small business owners is a measure to provide a KRW 1 million management stabilization fund to those whose sales have declined among small business owners with annual sales of 400 million won or less. The government will use data from the National Tax Service to determine whether or not sales will decline by comparing average sales in 2019 with average sales reported in the first half of this year. Small business owners that opened this year give money referring to monthly card sales. Businesses that are restricted to businesses after 9:00 pm, such as restaurants and coffee shops in the metropolitan area, are capped at 1.5 million won. Businesses that are collectively prohibited from receiving 2 million won. The government plans to provide management stabilization funds for companies that are collectively restricted and prohibited, regardless of whether sales decline or not. Total beneficiaries were estimated at 2.91 million, or 86% of all small businesses. For stores that have already closed, a 500,000 won incentive is given to re-challenge closed stores if they accept a job or education related to the restart. Until now, there were concerns that store owners who closed their business could not receive subsidies because they could not prove their income.

There were also measures to protect work. Between 500,000 and 1.5 million won will be paid to 700,000 self-employed and special-type workers whose income has decreased due to the reproliferation of Corona 19. An additional 500,000 won will be awarded to those who received 1.5 million won in security support in employment at the time of first payment, and 1.5 million won if earnings decreased when comparing the average earnings in June and July with the August earnings of new applicants. Pay.

Employees supporting part of the leave and the leave subsidy will be expanded to 240,000 people and the period of support will be increased from 180 days to 240 days. It creates 24,000 life protection jobs for those whose livelihood is difficult due to unemployment and 5,000 two-month jobs for low-income people with a median income of 75% or less.

Taking into account the increased burden on parents due to the closure of schools and nurseries, a child care fee of 200,000 won will be provided to families with children under primary school age.

○ Communication expenses support the budget more than support for low-income families

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The government emphasizes that it is a ‘personalized countermeasure’ for the vulnerable, but some point out that the purpose of the countermeasure has faded due to the inclusion of a large number of projects with practically universal support, such as support for communication costs 20,000 won for all citizens age 13 and older. There is even criticism that the government has started distributing cash with a conscious mind about the recent shaky approval rating.

The budget for telecommunications fees is 930 billion won. This is about 2.7 times the budget for emergency livelihood support (350 billion won), which provides up to 1 million won to households whose income has decreased due to unemployment, etc. It is the third scale after the one won).

Initially, the government and the ruling party emphasized that they must provide more support to those affected by Corona 19 in fiscal conditions. However, it can be interpreted that in the end a large number of patronage measures were included because the class that did not receive the subsidy could rebel.

Hong Nam-ki, Deputy Prime Minister for the Economy and Ministry of Strategy and Finance, said in a briefing that day: “The government came up with a plan to prioritize the young or the elderly due to various circumstances, such as financial difficulties. Said.

Paying job search assistance (500,000 won) to support youth employment is also noted as a populist policy. It is possible to receive a vocational training fee of up to 5 million won and a participation allowance of 400,000 won in the job success package, or with the job search support fund paid for 6 months at 500,000 won per month. The Ministry of Science and Technology strongly denied this when the rumor of the 500,000 won payment for unemployed youth was mentioned earlier.

A government official said, “The concept of giving another 500,000 won to young people who are not yet employed.”

Shin Se-don, Professor Emeritus in the Department of Economics at Sookmyung Women’s University, said: “Support for communication spending is unprincipled and can only be seen as a pre-Chuseok populist policy. “It is correct to do so.”

Sejong = Song Chung-Hyun [email protected], Joo Ae-jin, Nam Gun-woo, reporters