Opposition party passes act to grant 250,000 won to every citizen

During a meeting of the Public Administration and Security Committee on Thursday, the Democratic Party of Korea passed the special measure act to overcome the crisis of people’s livelihoods after the members of the People Power Party left the meeting. According to the act, the central and local governments will provide community-based gift certificates of 250,000 won to 350,000 won to every citizen. The opposition party also unilaterally passed the revised Trade Union and Labor Relations Adjustment Act, also known as the ‘yellow envelope act,’ during a meeting of the Agenda Coordination Committee of the Environment & Labor Committee on the same day. According to the Democratic Party, the acts will be processed during a regular session of the National Assembly on Thursday.

The act to grant 250,000 won is a pledge made by the leader of the Democratic Party, Lee Jae-myung, during the April 10 general elections to support struggling self-employed people and small business owners. The ruling party is opposing the plan by arguing that spending over 13 trillion won by increasing the national debt will only boost the economy by less than half of the amount and further destabilize inflation.

The ‘Yellow Envelope Act,’ which was passed by the opposition party during the last National Assembly and was later vetoed by President Yoon Suk Yeol, includes even stronger terms in the 22nd National Assembly. According to the revised act, the scope of workers expanded to include sole proprietors and special types of employment who organized or joined trade unions, and employers are defined to include original contractors. The business circles are concerned about a significant increase in labor disputes that could result from the revised act. In particular, the clause that prohibits holding an individual union member who committed illegal acts accountable for compensation for damages may exonerate illegal strikes and infringe property rights set forth by the Constitution.

As the ruling party has been strongly against the two acts, the president is most likely to veto them even if the opposition party unilaterally passes the acts during a regular session of the National Assembly. The act to grant 250,000 won is not suitable for the current economy of high inflation and large fiscal deficit, and its benefit to improve people’s quality of life is uncertain. The Yellow Envelope Act can destabilize the foundation of labor-management relations. However, the Democratic Party chooses to look away from the risks and forcefully push the acts. The party seems to intend to encourage the president to veto the acts and gain political advantages by claiming that the president and the ruling party blocked the legislation for people and workers.