The government is facing growing controversy over its decision to distribute 'living support funds' ahead of the Chuseok holiday, particularly among certain local governments. While officials argue that the initiative aims to stimulate consumption amid economic recession and high inflation, critics assert that tax benefits are more urgently needed than cash handouts.
As of August 5, various local governments are implementing programs to provide living support funds in the form of local currency or prepaid cards to boost local economies and stabilize residents' livelihoods. The amount distributed varies by region, ranging from 300,000 to 500,000 won per person.
For instance, Uiryeong County in South Gyeongsang Province plans to give 500,000 won to approximately 24,600 residents. In contrast, Yeongdong County in North Chungcheong Province will provide 300,000 won per resident, while Wanju County in North Jeolla Province has also decided to distribute 300,000 won to about 105,000 residents. However, the proposal for living support funds in Gangneung City was rejected by the city council, resulting in the cancellation of the program.
The government and local authorities describe these measures as necessary to revive consumption and invigorate local economies affected by high prices and economic downturns. Most of the support funds will be issued in the form of local currency or prepaid cards to encourage spending within the community.
Nevertheless, there is significant criticism online regarding the cash support policy. Many users question the rationale behind repeatedly distributing funds while the government is simultaneously reducing various tax benefits, such as card income deductions and public transportation deductions.
One user pointed out, "Even Gyeonggi Province, home to Samsung Electronics and SK Hynix, is tightening its budget, so why are there so many different support funds like COVID-19 relief, high oil support, living support, and universal support?"
Other comments included, "If they say there's no money and are cutting tax benefits, why are they giving out cash?" and "It feels like the economy is really in trouble. It's like treating a disease with painkillers without addressing the root cause, and it seems like the burden is being passed on to future generations."
Similar sentiments were echoed across various online communities, regardless of political leanings. In a progressive forum, users questioned, "Why are they trying to distribute funds when they are drastically cutting year-end tax deductions?" and "This isn't a national crisis like during COVID-19, so why are they throwing money around?"
Conversely, some users in communities like 'Women's Era' expressed positive views about the support funds, stating, "I’m glad they’re giving out money because I’m struggling financially," and "It’s better to distribute funds to the public than to have the higher-ups pocketing it."
Additionally, some users noted that the distribution of support funds does not necessarily align with specific political parties, citing examples such as Uiryeong County with an independent mayor, Yeongdong County with a People Power Party mayor, and Wanju County with a Democratic Party mayor, all of which are providing funds.
However, the debate over the fiscal soundness of cash support and its effectiveness in stimulating the economy is expected to continue as Chuseok approaches.
* This article has been translated by AI.
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