Where does Korea’s basic income movement go next?

Where does Korea’s basic income movement go next?

On March 9th, 48.56 percent of Korean people voted for Yoon Seok-yeol of the People Power Party which won only 0.7 percent more compared to 47.83% for Lee Jae-myung who pledged to implement basic income. With less than 1 percent difference in his loss, there is a local election coming in two weeks and another general election in two years. Where will Korea’s basic income movement go after Lee Je-myeong ‘s defeat?

Yoon Suk-yeol can no longer ignore Universal Basic Income, and the world is on the verge of realizing basic income. Yoon Seok-yeol, who became the new owner of Cheongwadae (Blue House), cannot pass any legislation without the consent of the Democratic Party with 172 seats, 57 percent overall. HIs People Power Party only holds 110 seats which represent 36 percent. This will remain the case unless they get more seats in the upcoming general election in two years. On the contrary, it is also a story that the Democratic Party of Korea can legislate the basic income that Lee Jae-myung promised if he is elected as a member of parliament in the by-election.

I interviewed Oh Jun-Ho, who was the presidential candidate for the Basic Income Party about the difference between Lee Jae-myung’s basic income pledge and his.

Oh Jun-Ho: There are three differences between my UBI policy from Lee Jae-myung’s:

1) First of all, the amount of the UBI is different. We promised 650,000₩ (533$) per month, which can support enough basic need for a living in Korea but Candidate Lee Jae-myung offered a very low amount of 83,000 ₩ (68$) per month.

2) In order to raise the financial resources, I insisted on reforming the tax and tax system to solve the polarization of wealth, and to expand basic income through redistribution of wealth, but candidate Lee Jae-myung does not seem to redistribute wealth because he drew a line about raising taxes. He is weak on that point.

3) Compared to us, presenting universal basic income as a policy and pledge, candidate Lee kept it as a pledge but hid or made his choice ambiguous in the election. It was disappointing for those who supported basic income with Lee, saying, “If there is public consent, we can do it, but if not, we won’t” (as quoted by The Korea Economic Daily, Dec. 2nd, 2021). Conversely, this is also the reason why those disappointed with Lee’s basic income supported me, Oh Jun-Ho.

Limitations:

The election was only focused on both parties so there were no alternative policy debates. As a voter and candidate, there was no such place where I could talk about UBI. Since only both camps had fights and policy spaces were not open, it was difficult to inform us of alternatives by ourselves as minor and minority parties.

Nevertheless, because I was there, there could be a future alternative to basic income or a justification for basic income. Because I criticized Lee Jae-myung’s timid basic income and the attitude of the Justice Party and other political parties toward selective welfare. I was able to inform the public that basic income was justifiable a little. In addition, public voters who support basic income have been created.

Expectations:

Though the results of the vote did not appear to be significant due to the phenomenon of leaning toward both parties, it cannot be evaluated only in this election, and it will be evaluated in the long-term trend later. Even if the people did not support this time, positive perceptions must have grown, and I am optimistic that Korea will return to positive support for the subsequent movement in the next election.

Considering that we are a new party, one member of the National Assembly, and only a small number of members, I don’t think we had too few votes (0.05%). Since other parties with a lot more party members won fewer votes than us, there is still a task of expanding the organizations and the number of voters who supported us, and we have to solve it well to expand our support.

Under the Yoon Seok-yeol administration, it is unclear whether Lee Jae-myung or his supporters will be one who can lead UBI in Korea from now. However, Seoul, which held a hopeful and important election, has enough potential to ignite it again. 

Local Elections:

Local governments themselves do not have tax rights, so they cannot collect and distribute taxes. We can’t talk at the national level. However, whether it is real estate or industry, there has been a problem that the common interests created within the common body have not been distributed, so we will talk about returning them to basic income, universal welfare, and universal services that must go to the majority in each province.

I also interviewed An Hyo-sang, the chair of BIKN about the election.

An Hyo-sang: We need time to think about evaluating the process and results of the presidential election. But we have the local election soon. So we quickly need to talk about it. From a broad viewpoint, we must think about the weak points and strong points we had.

We considered 2 viewpoints.

First, what conditions can BI have in its position before the election? Basic Income gained traction for implementation because of a confident and strong politician. Lee embraced the Basic Income idea as his election pledge. Since the base of BI movement is not strong, there was a very broad gap between the front line candidate Lee was based and where the basic Income movement is positioned. So after Candidate Lee was defeated, the bubble of basic income ideas that people enjoyed blew up. 

We need to face the reality of where the basic Income movement is positioned. We will have to try to gain broad and strong support from the ordinary people step by step with education, campaigns, propagation, organizations, and so on.

Despite Lee’s defeat and still our weakness, his idea planted the seeds of the basic income idea worldwide which will be widespread someday. We will harvest the fruits of our effort. We need to take time to see these fruits.

Second, as a center of the Basic Income movement, the Basic Income Korean Network (BIKN) will have two directions for the local election.

1) We will deepen our theory of our basic Income because we need a stronger theory and legitimation in order to gain wide popular support.

2) We have Basic Income supporters without and with political preferences. Some politicians still support BI idea as his policy, especially at the local level. Academics and activist social movements still support the BI idea so we will try to link personalities, individuals, and groups who support BI. 

Korea’s basic income movement, beginning with the 2007 presidential election pledges from the socialist party, has become widespread within just 15 years. According to Kanta Korea Research Company, 38.6 percent of the respondents said they were in favor of basic income, 52.3 percent did not know and 9 percent didn’t answer. 1,012 men and women aged 18 or older nationwide were targeted (Seoul Economy, Feb. 20, 2020).

The BIEN congress will be held again in Korea on Aug 24th-26th, 2023. The title is “Basic Income in Reality.” I expect the Basic Income Party to gain wide popularity in 17 cities with 19 candidates at the local election and the 2023 Korea BIEN Congress to draw attention worldwide so that it can lead a great success in the general election for Basic Income implementation.

Local elections will be held on June 1, in two weeks. Can the Democratic Party promote the universal basic income of the entire nation as a pledge in local elections? 

Since Lee Jae Myoung is running for the MP, Lee’s election camp says ‘this is whether Lee ‘s life or death’ as former president Lee Myong bak was trying to kill Roh Moo-hyun, and he seems to be winning. But he doesn’t talk about BI in his pledges during the democratic party’s local elections as well. But the Basic Income Party does out front, promoting basic income in all cities with a UBI of $78 a month. 

Where will Koreans raise their hands again, when Yoon Seok-youl refuses to work at Cheong Wa Dae (Blue House) given by them, but they started to work in Yongsan District all of sudden due to his private beliefs? 

Lee Jae-myung’s basic income pledge was as follows below in the presidential election:

  • Universal basic income for all citizens
  • After the public debate of the Presidential Basic Income Committee, it will be implemented by collecting public opinion.
  • Starting at 250,000₩ ($205) a year. A goal of 1,000,000₩ ($820) per year within the term by 2027
  • Land profit dividends and carbon dividends
  • Basic income is paid in local currency
  • Basic income and allowances by target
  • Basic income of 1 million₩ ($820) per year to young people aged 19-29 from 2023
  • Expanding the scope of child and youth allowances (step-by-step expansion, until the age of 18 in 2027)
  • Payment of seniority allowance

Written by: Mok Hwakyun (Moka)

Basic Income Takes a Hit in Korea

Basic Income Takes a Hit in Korea

On March 9, South Korea took to the polls for the 2022 Presidential Election. Former governor of Gyeonggi province, Lee Jae-myung of the ruling Democratic Party lost by a narrow margin of less than 0.7% to Yoon Suk-yeol from the People Power Party. This election outcome will likely stunt the development of basic income in the country. 

As Guy Standing has written previously, this election in Korea is a vital one as Lee Jae-myung is a proponent of basic income. Prior to his candidacy, Lee served as mayor of Seongnam and subsequently governor of Gyeonggi, the province surrounding the capital city of Seoul. Among other initiatives, he famously launched the Gyeonggi Youth Basic Income (YBI) in 2019, providing valuable insights into how this idea might work in a highly developed country as well as an Asian economy. It is not so often that we see a major presidential candidate championing basic income at a national level (Andrew Yang dropped out of the race in 2020). Lee vowed to gradually implement a universal scheme in Korea, focusing on the youth and expanding to cover the entire population.

As the world’s 10th largest economy, a nationwide programme implemented in Korea could lead to tremendous progress in the discourse on basic income. With an advanced economic structure, high automation rate, and rising youth unemployment, Korea has the conditions of a postindustrial society in which a strong case for basic income could be built. Instead, such a prospect was overshadowed by more salient topics such as economic inequality, inter-Korea relations, and China’s influence. Gender equality and anti-feminism were at the forefront of the political debate, with Yoon pledging to abolish the Ministry of Gender Equality and Family.

Dubbed the “unlikeable election” due to the prevalence of smearing campaigns, the presidential race was a very close one with neither candidate receiving majority support. Yoon garnered 48.56% of the votes nationwide, ahead of Lee’s 47.83%. A provincial breakdown of the election results reveals a highly divided country with democrat votes concentrated in the southwestern part of the country and conservatives in the east. Lee’s approval ratings in his own province seem to be falling – he barely received half of the votes in Gyeonggi this time, where he served as governor from 2018 to 2021. Now that Lee has resigned his governor seat and lost the presidential race, the cause for basic income in Korea will be affected to a certain extent.

This election outcome may not spell the end to basic income in Korea, however – outgoing president Moon Jae-in lost to Park Geun-hye in 2012, only to be elected as her successor five years later; moreover, a young Basic Income Party is seeking to bring this issue into the mainstream. The party fielded their own presidential candidate this year as well, critiquing Lee’s roadmap. Korea may not be the first country in the world to implement universal basic income just yet, but political tides could change and there is still room for this movement to grow.

On March 9 South Korea took to the polls for the 2022 Presidential Election. Former governor of Gyeonggi province, Lee Jae-myung of the ruling Democratic Party lost by a narrow margin of less than 0.7% to Yoon Suk-yeol from the People Power Party. This election outcome will likely stunt the development of basic income in the country.

As Guy Standing has written previously, this election in Korea is a vital one as Lee Jae-myung is a proponent of basic income. Prior to his candidacy, Lee served as mayor of Seongnam and subsequently governor of Gyeonggi, the province surrounding the capital city of Seoul. Among other initiatives, he famously launched the Gyeonggi Youth Basic Income (YBI) in 2019, which provides valuable insights into how this idea might work in a highly developed country as well as Asian economy. It is not so often that we see a major presidential candidate championing basic income at a national level (Andrew Yang dropped out of the race in 2020): Lee vowed to gradually implement a universal scheme in Korea, focusing on the youth and expanding to cover the entire population.

As the world’s 10th largest economy, a nationwide programme implemented in Korea could lead to tremendous progress in the discourse on basic income. With an advanced economic structure, high automation rate, and rising youth unemployment, Korea has the conditions of a postindustrial society in which a strong case for basic income could be built. Instead, such a prospect was overshadowed by more salient topics such as economic inequality, inter-Korea relations, and China’s influence. Gender equality and anti-feminism were at the forefront of the political debate, with Yoon pledging to abolish the Ministry of Gender Equality and Family.

Dubbed the “unlikeable election” due to the prevalence of smearing campaigns, the presidential race was a very close one with neither candidate receiving majority support. Yoon garnered 48.56% of the votes nationwide, ahead of Lee’s 47.83%. A provincial breakdown of the election results reveals a highly divided country, with democrat votes concentrated in the southwestern part of the country and conservatives in the east. Lee’s approval ratings in his own province seem to be falling as well – he barely received half of the votes in Gyeonggi, where he served as governor from 2018 to 2021. Now that Lee has resigned his governor seat and lost the presidential race, the cause for basic income in Korea will be affected to a certain extent.

This election outcome may not spell the end to basic income in Korea, however – outgoing president Moon Jae-in lost to Park Geun-hye in 2012, only to be elected as her successor five years later. Moreover, a young Basic Income Party is seeking to bring this issue into the mainstream, fielding its own presidential candidate in the election this year as well. Korea may not be the first country in the world to implement universal basic income just yet, but political tides could change and there is still room for this movement to grow.

Truston Yu is a BIEN life member and former resident of Seoul, specializing in Southeast Asian studies including Korea-Southeast Asia relations. Their commentaries have been featured by numerous outlets including the Diplomat, the Jakarta Post and the Straits Times.

South Korea: The report on Youth Basic Income in Gyeonggi Province

Gyeonggi Province, Republic of Korea, has been implementing the Youth Basic Income (YBI) programme since April 1, 2019. The English edition of the report on the project was published in July and can be accessed here.

The following is a short introduction by Ikjin Yu, Researcher at Gyeonggi Research Institute, Dept. of Economic & Social Policy.

Gyeonggi Province, Republic of Korea, has been implementing the Youth Basic Income (YBI) programme since April 1, 2019. In December 2020, Gyeonggi Research Institute (GRI), an affiliated organisation of Gyeonggi Province, published a research report (Korean version), focusing on the first year result of the YBI programme. Recently, in July 2021, GRI has published its English version.

This research report mainly consists of quantitative and qualitative analyses.

For quantitative analysis, the experimental group comprised 11,335 recipients who participated in both the ex-ante and ex-post surveys, whereas the comparison group included 800 respondents who resided in regions other than Gyeonggi Province. There were five categories for analysis such as “happiness”, “health and diet”, “perceptions and attitudes”, “economic activity” and “dream-capital”. The results of the Difference-In-Differences (DID) analysis showed that Gyeonggi YBI positively influenced on their happiness, mental health, workout frequency, diet, perception on gender and equal society, dream-capital, economic activity, time use and so forth.

For qualitative analysis, participants of individual interviews and focus group interviews (FGI) were variously grouped by detailed category. It was conducted on 24-year-olds residing in Gyeonggi Province only who received four rounds of Gyeonggi YBI. A total of 42 participated in the individual interviews and the FGIs. The analysis shows many things regarding Gyeonggi 24-year-olds’ perception of Gyeonggi YBI and basic income itself.

The research report concluded that the Gyeonggi YBI has positively influenced on the 24-year- old youths’ life in various aspects based on the recipients’ experience over the past one year.

3rd Gyeonggi Basic Income Conference featured researchers from BIEN

With the theme, ‘From the COVID-19 Disaster to New Great Transition, Basic Income!’ the 3rd annual Basic Income International Conference was held in Gyeonggi Provence, South Korea, 28-29 April 2021. Hosted by the Gyeonggi Provincial Government, and organised by Gyeonggi Research Institute (GRI), Gyeonggi-do Market Revitalization Agency (GMRA), KINTEX, and the Basic Income Korean Network (BIKN), it featured panel talks and discussion by many researchers from BIEN, including Chair Sarath Davala, Hyosang Ahn, Philippe Van Parijs, Guy Standing, Annie Miller, Troy Henderson, Louise Haagh, Almaz Zelleke, Julio Linares, Roberto Merrill among others. Economist Joseph Stiglitz gave a keynote speech on the second day.

Gyeonggi Provence has been at the forefront of implementing pilot projects of basic income, including a youth basic income, which was expanded to the entire province during the covid crisis, and more recently basic incomes for rural and fishing communities.

The playlist for the conference, which includes versions translated into English is here. In order to find the talks you would like to listen to, please consult the programme here. All times are approximate.

Korea: Interview with pro-UBI provincial governor

Korea: Interview with pro-UBI provincial governor

The Dream of a Just Society Found in Basic Income

[Interview] Meeting with Gyeonggi province governor Jae-myung Lee

Interviewed by Jun-ho Oh

Author of Basic Income Can Change Our World (2017, in Korean)

Translated by Hee Su Jung

“The combination of basic income, local currency, and national land holding tax will make the majority of the people happy.”

“It pains me to see people having no land misunderstand the national land holding tax.”

Governor Jae-myung Lee introduced the “Seongnam Youth Dividend” in 2016 during his term as the mayor of Seongnam city. It was a partial basic income, which provides 1 million won per year to 10,000 24-year-olds residing in Seongnam city. At the time, he faced negative reactions from the former Park Geun-hye government of South Korea and was criticized for being a populist, but gained strong support from local businesspeople and the youth.

After being elected as the governor of Gyeonggi province in the local election of 2018, Lee started to provide the Gyeonggi Youth Basic Income to 175,000 24-year-olds residing in Gyeonggi province since April 2019.

The amount of Gyeonggi Youth Basic Income is 1 million won per year, and it has been paid in local currency. The increasingly positive reactions towards the policy after the implementation of the Seongnam Youth Dividend helped to make this policy a reality throughout the province. Lee wants to go further than Gyeonggi Youth Basic Income and create a universal basic income covering all citizens of South Korea, along with the implementation of “basic income funded by national land holding tax” to fund the proposal.

The interview with Jae-myung Lee was held at Gyeonggi Provincial Government Building, at 11 am, June 20th, 2019.

Unlike other politicians, you are a strong advocate of the basic income movement. What aspects of basic income were you drawn to?

On one hand, basic income resonates with my dream of a just society. Also, I think that it is an unavoidable policy in order to preserve our societal system. The decrease in the importance of labor due to the fourth industrial revolution, and the current situation where a few wealthy individuals hold excess profits makes it nearly impossible to prevent society from collapsing. Historically speaking, when social inequality reached a certain point, the system collapsed. This may be what our society is facing, which is the reason why policies should be revisited. In my opinion, basic income may be our only choice. Another problem caused by the excessive concentration of wealth and exaggerated excess profits is that it decreases resource efficiency. Distributing wealth to the people, who have fewer opportunities to work compared to the past, will aid in sustainable economic growth, regime maintenance, ultimately achieving real freedom and equality.

There were a number of basic income experiments held abroad, but they primarily targeted the poor. In contrast, Gyeonggi Youth Basic Income was implemented where it was given to every single 24-year old. What is the significance of the policy?

As you know, basic income aims to provide all people with a minimum amount of livelihood regularly in cash. What we are doing here is limited to a certain age, so it does not completely correspond with basic income. It may be quite insufficient, but the form and principle are similar. I would like to stress that it was an introductory measure. As to the reason why I chose the youth to be the recipients, the youth these days are in the most disadvantageous position in their overall lifespan, but at the same time, they are least protected by the state. In the past, we used to say “The hardships of youth are invaluable,” “There is always a second chance” to young people who had ample opportunities, but the situation is different for the youth nowadays. I thought young people needed special political consideration. I also considered the ripple effect of the policy. It is not yet a perfect system, but a process of throwing a buzz to society. In terms of necessity, the young needed this most, and, I think, there would be an explosive power of a basic income policy for the young in making basic income a social agenda.

One of the unique elements of Seongnam city Youth Dividend and Gyeonggi Youth Basic Income is that they are paid by local currency. On the other hand, there are criticisms of the dividend not being paid by cash. Why did you choose local currency? (Gyeonggi province local currency can be used either in the form of a certificate or a rechargeable debit card. It can be used similarly as cash at affiliate stores in the region. Businesses with large revenue including big retailers are excluded.)

One reason is to overcome resistance. The notion of giving youth cash met criticisms of being populistic, and I had to admit that. New policies always meet resistance, no matter how ‘correct’ the policy is. But resistance decreases when the effect of the policy and the people who gain from it increases. Since it is a policy project funded by public finance, we have designed it to benefit the self-employed and the local economy as a whole, even though it may raise a few inconveniences caused by the local currency for the youth who use it. Another reason is about gaining the support of traditional market merchants and small businesses. This was an effect proven in the case of Seongnam city Youth Dividend. Sales of traditional markets in Seongnam city increased by 26% in the year 2016, when the policy was implemented.

You insist on giving all citizens universal basic income, going further than Gyeonggi Basic Income. At the Gyeonggi province basic income international conference held at April 29th, you have argued to “distribute profit that comes from the commons”, and are consistently arguing for the implementation of basic income funded by a national land holding tax. What is your specific plan in introducing universal basic income?

Making a new policy is important, as is combining necessary policies. One of the biggest problems in our society is the unearned income issue. People do not make creative efforts in a society with excessive unearned income. In such a society, people are trying to take power and take away power from others.

The problem of unearned income must be solved to build a ‘normal’ society where labor is respected and people are assured their share in accordance with their contributions. The biggest issue is a sharp increase in unearned incomes from lands and real estates. And that has significantly worsened compared to the past. One reason is the low real estate holding tax. The way to recapture unearned income from real estate is to increase the tax on it. Currently, real estate holding tax is about 0.3 percent. This is one-sixth of the automobile tax, which is about 1.8~2 percent despite the fact that it is the same type of tax based on property. Why is a tax on cars, usually owned by ordinary people, so high when the tax on land is so low? After fully understanding the situation, there will not be as much resistance towards raising tax rates to 0.5 percent, which is about half of the tax rates in advanced countries. By collecting 15 trillion won more in addition to this, we can pay each citizen 300 thousand won per year.

Is it to combine basic income and policies that aim to recapture unearned income from real estate?

Let us combine the important policy project of overcoming a ‘republic of unearned income from real estate’, and a basic income policy. It is an aim worth pursuing which will make the majority of the people happy. The combination of basic income, local currency, and national land holding tax make sense. This is how to raise support for my policies. You need to change people’s lives, gain support, and minimize opposition. For this, we had to start off with a partial basic income, small amounts of basic income and find a source of revenue that can be agreed upon among people. Land is the most typical type of common wealth and nobody can completely own land in this country, even though s/he has the ownership of that land. The Constitution states a public concept of land. Also, there is no reason for it to require a massive source of revenue at this moment. A child allowance implemented this year by the government is an example of a partial basic income. We can give out child allowance to children under seven, give basic income to 24-year-olds in Gyeonggi province, give basic pension to all the elderly regardless of income level in the future, and fill the gaps as we proceed. In the end, we will be able to build a basic income system even though it may be a low amount at the beginning. The amount can be increased. Implementing a basic income is not about financing sources, but about the authority’s will.

Distrust against the proper use of tax revenue is common in South Korea.

We need to get people to experience that if they pay tax, it would benefit them. 15 trillion won from national land holding tax might only pay 300,000 won per year to all citizens. But people will think “Did I get what I paid for? Would I get more if I pay more?” South Korea is a “low burden, low welfare” society and we need to increase both taxes and welfare. If we only support the poor, the taxpayers would think “Why do I have to pay taxes to help them?” In order to decrease resistance, we have to make the taxpayers think that paying taxes will benefit them. In the Nordic countries, people do not complain that they pay almost half of the GDP to tax, because the majority of the people benefit more than they pay. I want Koreans to have the same experience. After experiencing first-hand, it wouldn’t be difficult to increase basic income from 30,000 won per month to 50,000 won per month, or even more. This will allow for increasing taxation without resistance. At present, there is no taxation power for local government. One possibility is that the National Assembly makes related laws, based on the public concept of land stated in the Constitution, and local governments then enact the municipal ordinance.

Could you comment on the significance of what you’re doing for basic income supporters abroad?

While there were basic income experiments in other countries, we are actually implementing the policy. To be honest, the amount is not enough to result in experimental effects. 1 million won a year is insufficient as a basic income. But I am trying to spread the idea of basic income through this policy. Anyway, it will benefit over 150 thousand people a year, and hundreds of thousands for some years ahead. Even though we started with a small amount of basic income for a particular age group due to financial reasons, but we should expand the recipients and increase the amount in time. A national decision is necessary, which is ultimately made by the people. In order to do so, people need to know about the basic income idea and have a desire for it. I think this policy would help them with that.

Note. This article is a translation of an interview included in the first issue (link: https://basicincomekorea.org/wp-content/uploads/2019/07/BasicIncomeMagazine_Issue001-Summer2019.pdf) of Basic Income Magazine (quarterly published by the Basic Income Korean Network). The magazine is in Korean, and this article is a summarized version of the original article.