By Jung Sung-ki
Traditionally, national security issues regarding North Korea’s military threats and economy-related matters dominated the agenda for parliamentary or presidential elections, but not this time.
Ahead of next year’s general and presidential elections, the rival political parties are wrangling over public welfare policies, which the parties and political observers believe will sway the public opinion in the elections to an extent.
“The main opposition Democratic Party (DP)’s successful bid to free lunches for all elementary and secondary students ignited this ‘war of welfare,’” a political observer told The Korea Times.
“The opposition party, in fact, benefited from the free school lunch campaign in last year’s local elections, so they want to capitalize on the ‘free-series’ welfare programs more and the ruling Grand National Party (GNP) had to respond to it,” he said. “The problem is that any welfare program would eventually sacrifice taxpayers’ money.”
In December, the DP-backed Seoul Metropolitan Council passed the 2011 budget bill containing about 70 billion won earmarked for free school meals, despite vehement opposition by Seoul Mayor Oh Se-hoon, a potential presidential candidate on the GNP ticket, and conservative civic groups.
Oh has argued free lunches should be offered only to students from low-income families, and more money should instead be spent to improve welfare benefits for the underprivileged students. Otherwise, the mayor claims, the government’s fiscal soundness would be dent seriously.
The DP says limiting free lunches in accordance with income level would stigmatize students who receive them actually perceptive of indicators of wealth and class.
Following its successful free school lunch campaign, the center-left DP has laid out a package of “universal” welfare programs, which the conservative GNP denounces populist plans that would lead to collecting more taxes.
DP’s proposals include a free health care for the entire population, free childcare and half-priced tuition for college students.
The party claims, for example, the free medical service is aimed at paying 90 percent of an individual’s medical expenses by 2015.
Currently, 62 percent of medical fees is covered by state health insurance and 38 percent is covered by individuals.
The DP estimates that about 8 trillion won would be required for the new program and it wants to levy a new 5.64 percent tax to finance about half of the target.
Proponents in the DP for the free medical service plan argues the program is feasible when the government cuts unnecessary spending in some state projects, scrap a plan to reduce taxes for the high-income bracket, and expand composite income tax.
Rep. Chung Dong-young, a member of DP’s supreme council, Thursday called for garnering about 20 trillion won from people on high incomes to implement the party’s welfare plans.
In the face of criticism about a lack of financial resources for the party’s welfare campaign, the DP announced a plan to launch a 20-member panel next month to verify the feasibility of the party’s pledges of broader welfare benefits.
The GNP denies DP’s welfare policies.
It says the free medical care would cost about 30 trillion won annually, criticizing the DP for make an estimation of the cost too conservatively apparently to win the public support.
The party also says the free lunch plan would cost some 1.7 trillion won and free child care, 6.8 trillion won. The half-price tuition program would cost about 4.9 trillion won.
Minister of Health and Welfare Chin Soo-hee backed the GNP position.
“The DP’s free public health program isn’t truly free,” she said. “An extra 30 trillion is needed to finance the program, and in this case, the cost of health insurance fees will be doubled. This will greatly burden both low- and high-income classes.”
Former GNP chairwoman Rep. Park Geun-hye, a prominent presidenital candidate for next year’s presidential race, expressed concern about DP’s welfare plans.
In a luncheon with technocrats-turned-lawmakers of the GNP, Park called for a “tailored welfare policy” to give benefits to those in need selectively.
Earlier on Friday, a presidential panel proposed a hybrid between the welfare pledges of both the GNP and DP.
In its report to President Lee Myung-bak, the Presidential Council for Future & Vision suggested that the government resume the so-called Human New Deal Project, a 2009 measure aimed at helping low-income households during a global financial crisis.
The panel said the government needs to pursue both welfare policies so that beneficiaries can be decided depending on situations and conditions.
It said the Human New Deal Project can serve as a stepping stone to the Korean-style welfare model.
Under the project, the government will step up a drive to reduce household spending on private education, communication and renting houses, while focusing efforts on creating jobs and encouraging the launch of social enterprises and one-man businesses in high-tech industries.
Traditionally, national security issues regarding North Korea’s military threats and economy-related matters dominated the agenda for parliamentary or presidential elections, but not this time.
Ahead of next year’s general and presidential elections, the rival political parties are wrangling over public welfare policies, which the parties and political observers believe will sway the public opinion in the elections to an extent.
“The main opposition Democratic Party (DP)’s successful bid to free lunches for all elementary and secondary students ignited this ‘war of welfare,’” a political observer told The Korea Times.
“The opposition party, in fact, benefited from the free school lunch campaign in last year’s local elections, so they want to capitalize on the ‘free-series’ welfare programs more and the ruling Grand National Party (GNP) had to respond to it,” he said. “The problem is that any welfare program would eventually sacrifice taxpayers’ money.”
In December, the DP-backed Seoul Metropolitan Council passed the 2011 budget bill containing about 70 billion won earmarked for free school meals, despite vehement opposition by Seoul Mayor Oh Se-hoon, a potential presidential candidate on the GNP ticket, and conservative civic groups.
Oh has argued free lunches should be offered only to students from low-income families, and more money should instead be spent to improve welfare benefits for the underprivileged students. Otherwise, the mayor claims, the government’s fiscal soundness would be dent seriously.
The DP says limiting free lunches in accordance with income level would stigmatize students who receive them actually perceptive of indicators of wealth and class.
Following its successful free school lunch campaign, the center-left DP has laid out a package of “universal” welfare programs, which the conservative GNP denounces populist plans that would lead to collecting more taxes.
DP’s proposals include a free health care for the entire population, free childcare and half-priced tuition for college students.
The party claims, for example, the free medical service is aimed at paying 90 percent of an individual’s medical expenses by 2015.
Currently, 62 percent of medical fees is covered by state health insurance and 38 percent is covered by individuals.
The DP estimates that about 8 trillion won would be required for the new program and it wants to levy a new 5.64 percent tax to finance about half of the target.
Proponents in the DP for the free medical service plan argues the program is feasible when the government cuts unnecessary spending in some state projects, scrap a plan to reduce taxes for the high-income bracket, and expand composite income tax.
Rep. Chung Dong-young, a member of DP’s supreme council, Thursday called for garnering about 20 trillion won from people on high incomes to implement the party’s welfare plans.
In the face of criticism about a lack of financial resources for the party’s welfare campaign, the DP announced a plan to launch a 20-member panel next month to verify the feasibility of the party’s pledges of broader welfare benefits.
The GNP denies DP’s welfare policies.
It says the free medical care would cost about 30 trillion won annually, criticizing the DP for make an estimation of the cost too conservatively apparently to win the public support.
The party also says the free lunch plan would cost some 1.7 trillion won and free child care, 6.8 trillion won. The half-price tuition program would cost about 4.9 trillion won.
Minister of Health and Welfare Chin Soo-hee backed the GNP position.
“The DP’s free public health program isn’t truly free,” she said. “An extra 30 trillion is needed to finance the program, and in this case, the cost of health insurance fees will be doubled. This will greatly burden both low- and high-income classes.”
Former GNP chairwoman Rep. Park Geun-hye, a prominent presidenital candidate for next year’s presidential race, expressed concern about DP’s welfare plans.
In a luncheon with technocrats-turned-lawmakers of the GNP, Park called for a “tailored welfare policy” to give benefits to those in need selectively.
Earlier on Friday, a presidential panel proposed a hybrid between the welfare pledges of both the GNP and DP.
In its report to President Lee Myung-bak, the Presidential Council for Future & Vision suggested that the government resume the so-called Human New Deal Project, a 2009 measure aimed at helping low-income households during a global financial crisis.
The panel said the government needs to pursue both welfare policies so that beneficiaries can be decided depending on situations and conditions.
It said the Human New Deal Project can serve as a stepping stone to the Korean-style welfare model.
Under the project, the government will step up a drive to reduce household spending on private education, communication and renting houses, while focusing efforts on creating jobs and encouraging the launch of social enterprises and one-man businesses in high-tech industries.
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