(Breaking News) Suwon City to Distribute 100,000 Won per Capita in Suwon-Style Disaster Basic Income

[Suwon Ilbo=Reporter Seo Dong-young] Suwon City has decided to distribute 100,000 won per capita in 'Suwon-Style Disaster Basic Income' to all citizens of Suwon.

Mayor Yeom Tae-young of Suwon City and Cho Myung-ja, President of Suwon City Council, held an online emergency briefing at Suwon City Hall on the 2nd and announced that they would "distribute Suwon-Style Disaster Basic Income" to overcome COVID-19.

The City Council plans to hold a temporary session for one-time supplementary budget early next week to distribute the Suwon-Style Disaster Basic Income.

The amount will be 100,000 won per capita regardless of income level, and the distribution method is being reviewed with cash in April and local gift certificates in May. With this, Suwon citizens will receive up to 1.6 million won based on a family of four: 400,000 won in city support funds, 400,000 won in Gyeonggi Province support funds, and 800,000 won in national government support funds. The current population of Suwon is approximately 1.19 million, and the budget required for Suwon-Style Disaster Basic Income is estimated to be 119.2 billion won.

Mayor Yeom stated, "This year marks the first time in 25 years that our city has become a dependent jurisdiction, showing how dire our financial situation is. Despite these circumstances, we have made efforts to fill the welfare gaps left by the central government and provincial government and to implement policies that citizens can feel directly."

President Cho said, "As we are starting late, we are working on amending ordinances to distribute the funds as quickly as possible."

[Full Text of Mayor Yeom Tae-young's Briefing]

I am Yeom Tae-young, Mayor of Suwon.

Distinguished citizens of Suwon, numbering 1.25 million!

Our economy is facing an unprecedented emergency due to the unprecedented COVID-19 crisis.

Citizens say "This is the hardest we've ever experienced."
They appeal, "We endured the IMF crisis and got through it well, but COVID-19 is truly unbearable."

As the Mayor of Suwon, I recognize the gravity of the current situation where people's livelihoods are severely threatened, and I am committed to mobilizing the capacity of local government to overcome this 'extraordinary economic situation.'

Our city will provide 'Suwon-Style Disaster Basic Income' of 100,000 won per capita to citizens. We will support all citizens regardless of their income level.

I believe you all understand that the financial conditions of our city in 2020 are very dire.

Until now, our city has been a 'non-dependent jurisdiction' that could operate its finances independently without receiving ordinary transfer grants from the government. However, this year we have fallen for the first time to the status of a 'dependent jurisdiction,' leaving us with very limited discretionary resources.

In particular, following the Park Geun-hye administration's 'Local Finance Restructuring' in 2016, the abolition of preferential distribution exceptions for non-dependent jurisdiction transfer grants, the reduction in corporate local income tax, and the increase in government-led welfare programs' 'local matching projects' have significantly increased the welfare business financial burden for our city, which has the largest population.

Despite this deteriorating financial situation, our city, based on the judgment that citizens' safety and livelihoods are paramount, plans to utilize the 'disaster management fund' and 'net fiscal surplus' to create approximately 120 billion won in 'Suwon-Style Disaster Basic Income,' providing 100,000 won per citizen.

Suwon City has been preparing 'emergency disaster relief funds' while monitoring announcements of urgent financial support plans from the central government and provincial governments in relation to COVID-19.

Our city has deliberated on how to fill the gaps not addressed by the policies of the central and provincial governments and simultaneously create policies that directly touch citizens' lives.

An urgent online panel survey of Suwon citizens showed that the appropriate amount was preferred to be 100,000 won (73.8%), the distribution method to be local currency (62.3%), and the recipients to be all citizens (73.3%).

After carefully designing internal policy support measures, we are announcing our plan today.

Our city will, following the resolution of the Suwon City Council temporary session scheduled for early next week, distribute 'Suwon-Style Disaster Basic Income' in the most convenient way for citizens as soon as possible.

When the Suwon City Council convenes next week, once we enact related ordinances and pass the budget for 'Suwon-Style Emergency Disaster Basic Income,' citizens will receive up to 1.6 million won based on a family of four: 400,000 won in city support funds, 400,000 won in Gyeonggi Province support funds, and 800,000 won in central government support funds.

To this end, our city will promptly provide 1.19 million, 762 citizens (as of March 31, based on Korean nationals) with 100,000 won per capita, totaling approximately 119.2 billion won. We also plan to provide our city's 10% share of the central government's disaster relief funds or, depending on changes in National Assembly decisions, support emergency livelihood projects for vulnerable groups such as small business owners and those laid off due to the COVID-19 crisis. In this emergency economic situation, the most certain effects of fiscal investment will be 'promptness' and 'timeliness.'

No matter how much support is provided, if it is not distributed during the most difficult time immediately, its effect will be halved. We will prepare with maximum speed to ensure that support reaches citizens as quickly as possible, beginning this month.

Additionally, to resolve any inconvenience for citizens receiving the support, we will simplify the application procedures. We will significantly increase temporary support staff at the 44 administrative welfare centers in each district to ensure citizens face no inconvenience in applying.

To alleviate the economic crisis situation even slightly, our city plans to allocate a total of 182.8 billion won to related support budgets through the first supplementary budget on March 30 and the 'one-time supplementary budget' on April 6 next week.

Facing an unprecedented crisis where income is evaporating across all age groups, all classes, and all occupations due to the COVID-19 crisis, emergency fiscal injection will accelerate the flow of economic blood vessels and reconnect the broken chain of local economies, serving as a primer for economic activation.

For the rapid implementation of Suwon-Style Disaster Basic Income, the assistance of the Suwon City Council is more essential than ever. President Cho Myung-ja and City Council members have agreed to support the passage of this second supplementary budget at the City Council early next week. I express my gratitude for this.

Distinguished citizens of Suwon, although these days are difficult due to COVID-19, we will overcome this wisely together.

There are countless cases and stories: residents who made anonymous donations at administrative welfare centers, children who donated piggy banks with handwritten letters in their small hands, and mask donations continued from many places.

As of today, a total of 324 cases of donations, both cash and in-kind, totaling 783.86 million won, have been collected. This is how citizens' dedication to overcoming crises together builds Suwon's dignity.

At this time when everyone is suffering from COVID-19, I humbly propose campaigns of 'good giving' and 'good prepayment.'

A movement is emerging in households whose livelihoods are not difficult to donate the disaster basic income support funds. This is a voluntary 'good giving movement' that practices solidarity and sharing.

Additionally, the 'good prepayment movement,' where people make advance purchases at small neighborhood shops and small businesses and promise continuous visits, will also greatly help small business owners facing difficulties.

Although 2020 is a 'silent spring' for us, it will be recorded in history as a 'great spring of citizens' who have turned crisis into opportunity.

Our city will certainly overcome the 'war against COVID-19.' We believe in the strength of Suwon citizens. Let us overcome this together. Thank you.