Main opposition seeks to hand out gift certificates

The main opposition New Politics Alliance for Democracy included in the extra budget bill a budget item worth 214 billion won (185 million U.S. dollars) to grant gift certificates worth 100,000 won (87 dollars) each for traditional markets to 2 million low-income households. Accordingly, the parliamentary Health and Welfare Committee approved the bill on extra budget for 2015, which included the measure on Tuesday. NPAD, which criticized the ruling party by insisting that “pork-barreling budget should not be allowed in the extra budget,” thus shifted its stance all of sudden, and started to push for populist policy.

NPAD compliments the measure itself by calling it an idea that kills two birds with one stone: assistance to boost domestic consumption and support self-employed people. But it is questionable how significant contribution will distribution of gift certificates to low-income households at the pretext of economic recession will have to galvanizing the livelihoods of working-class people, and shoring up consumer spending. The measure could only give people expectations for benefits if and when a situation similar to the MERS crisis occurs again in the future. If NPAD continues to make moves to offer pork-barreling policies to garner votes while claiming that it will step up efforts as a "competent political party centered on economy," it will hardly be able to earn people’s sympathy and support.

The policy is similar to the distribution in 2009 of gift certificates worth 20,000 yen (160 dollars) each by the government of the Democratic Party of Japan to low-income families at the pretext of promoting consumption. As a survey revealed that 68 percent of those who had received the certificates bartered the certificates with cash, and the policy’s effect in shoring up consumption was minimal. The Japanese Democratic Party’s government repeated such policy failures and ended up handing over power to the Liberal Democratic Party.

Korea is seeing its fiscal soundness significantly deteriorate, as the country has incurred shortfalls in tax revenue for four consecutive years due to a rosy economic picture drawn by the government, and negative developments in Korea and overseas adding to the woes. With Korea having to appropriate 81 percent of the extra budget from government debts, NPAD is displaying the outdated practice of pork-barreling budget designed for the general elections, which runs counter to the purpose of extra budget: economy recovery. NPAD should keep in mind the lessons from Greece, which is paying a hefty price for its destructive populist policy. The ruling and opposition parties are coordinating schedules to deliberate the bill on extra budget this week. It is urgently needed that they keep balance of the extra budget from irresponsible and recklessly policy, before approving the bill on extra budget.