By Yoon Ja-young



Following remarks by some of the potential presidential candidates that a basic income should be introduced, controversy is arising about its feasibility. Though the idea doesn't seem to have major support yet, economists say that the government should be prepared as demand for a basic income is likely to increase.



The idea of a basic income is to provide a monthly sum to any citizen, regardless of their assets or whether they are working. It contrasts with selective welfare which is provided only for the poor.



Most actively supporting the idea of a basic income among potential candidates is Seongnam City Mayor Lee Jae-myung. The city has adopted a kind of basic income for young people. Seoul City Mayor Park Won-soon also said recently that the country should adopt a basic income according to lifecycle, such as young people seeking jobs and senior citizens. Lee says the program can be funded through a tax hike on conglomerates and high wage earners. Park is calling for restructuring spending taxes and reforming the welfare system.



The idea, however, doesn't seem to have major support yet. A survey by Hyundai Research Institute last year showed that 75.3 percent of Koreans are against the adoption of the basic income, while only 20.6 percent support the idea.



"People seem to be concerned that the basic income provided equally to anyone will result in a reduction of the national pension or an increase in the tax rate," said Kim Dong-yeol, a senior researcher at the institute.



Males, singles, those in their 20s, and those without jobs are relatively more likely to support the idea. By profession, government officials were most supportive of the idea. Those in their 50s, those with over 80 million won annual income or over 1 billion won in assets, professionals and married people were relatively unsupportive.



While the huge cost and the blunting of the motivation to work are cited as side effects, some experts say it also has positive aspects to consider. On top of lessening inequality, they say a basic income can cut administrative costs incurred in selective welfare.



Jung Wo-ho, a senior researcher at Korea Research Institute for Vocational Education and Training, said a basic income has a positive effect on the labor market.



"Some people may criticize the idea, saying, ‘Who would work if they are provided basic income unconditionally?' However, a basic income increases the motivation of low-earners more than the current welfare system does."



He pointed out that beneficiaries are tempted not to work under the current welfare system as their benefit is slashed once their income reaches a certain level. "Since a basic income is unconditional, they are motivated to work further," he said.



"A basic income redistributes income to the low and medium income brackets, who have a higher propensity to consume than high earners. It increases production by stimulating consumption, thus increasing labor demand," he said, adding that it will encourage startups since it lessens risk.



Prof. Kang Nam-hoon of Hanshin University says that around 180 trillion won is needed to provide a 300,000 won basic income per person. Despite a tax increase, he says 82 percent of the nation's households will be getting more benefits than they pay in taxes.



However, experts also stress that the basic income is regarded as a means of decreasing excessive welfare in countries with good social welfare systems. "With only a small portion of people supporting basic income as of yet, it would not seem an immediate issue in Korea. However, with increasing inequality and the continuous economic slowdown, coupled with slow job creation and development of artificial intelligence, more people will be interested in the basic income. The country should be prepared for this," Kim said.



