Gyeonggi Province's youth basic income debate reignites in Seongnam and Goyang

Discussions surrounding the reintroduction of youth basic income are gaining traction in Seongnam and Goyang, two cities within Gyeonggi Province that had previously ceased the program. This renewed debate is largely attributed to recent shifts in the local political landscape.

In Seongnam, a proposed ordinance for the "Seongnam City Youth Basic Income Payment Ordinance" was submitted to the city council. This ordinance, co-sponsored by 18 Democratic Party council members, aims to provide 1 million won annually (250,000 won per quarter) to 24-year-old residents, distributed as local currency, irrespective of their income. The program was first introduced in 2016 during President Lee Jae-myung's tenure as Seongnam mayor and later expanded province-wide as "Gyeonggi Province Youth Basic Income" when he became governor.

However, the program was fully suspended in July 2023 under Mayor Shin Sang-jin, who belongs to the People Power Party, with the support of a majority of council members from the same party. The political tide has now turned with the opening of the 10th City Council, where the Democratic Party secured 18 out of 32 seats. With the Democratic Party making the ordinance's revival their top priority, its passage through the council appears highly probable. Nevertheless, Mayor Shin, who was re-elected, retains the right to veto the ordinance, and overriding such a veto would require a two-thirds majority (22 seats), which the Democratic Party alone cannot achieve. Therefore, the final decision hinges on negotiations between the council and the executive branch.

Councilwoman Yoon Hye-sun, the primary sponsor of the ordinance, emphasized its role in alleviating economic instability and social inequality among young people amidst prolonged economic uncertainty, high inflation, and high interest rates. She argued for the swift normalization of the system, noting that 29 out of 31 cities in Gyeonggi Province currently implement it.

A similar shift is observed in Goyang City, which also suspended its youth basic income program. While the previous administration cited budget shortages, the newly elected mayor, Min Gyeong-seon of the Democratic Party, has pledged to resume payments as a key campaign promise. The Goyang City Council also saw a political change, with the Democratic Party securing 18 out of 34 seats, compared to an equal split in the previous term. However, the resumption of payments, potentially including retroactive application for the latter half of the year and costing up to 24 billion won, faces hurdles. The program operates on a 7:3 matching ratio of provincial and city/county funds. Without city/county funds, provincial funds cannot be allocated, making the mayor's commitment crucial. Goyang City is expected to renegotiate funding ratios with Gyeonggi Province to determine a new payment timeline.