Mayor threatens to bring allowance dispute to Constitutional Court

Seoul City on Thursday warned it would approach the Constitutional Court against the central government’s attempt to block its youth welfare policy in an escalating controversy over its plans to subsidize unemployed youth. As an alternative, it proposed creating a social consultative body to discuss the differences.

On Dec. 1, the central government passed an ordinance that would allow the state to cut subsidies for municipalities if they do not consult it before introducing or changing welfare-related measures. It was promulgated on Thursday.

Seoul Mayor Park Won-soon said in a news briefing that the ordinance breaches local autonomy and violates relevant laws on state subsidies for municipalities.

“It is an excessive violation of the autonomous power of local governments for the central government to virtually attempt to control the city’s affairs related to the welfare of its residents. It is a clear violation of the spirit of the constitution,” Park said.

Prior to the ordinance, negotiating welfare measures with the Welfare Ministry was mandatory but there was no penalty for not obeying the rule, according to the Interior Ministry.

Park has been pushing to dole out an average allowance of 500,000 won ($420) each to young job seekers from next year as one of his key welfare policies, much to the ire of the central government, which immediately objected saying it overlapped with the jurisdiction of the Welfare Ministry. This has given rise to speculation that both moves are politically motivated.

The ruling Saenuri Party fueled the speculation by calling Park’s initiative “populist,” arguing that the mayor is attempting to “purchase” voters with taxpayers’ money ahead of the general elections slated for next year.

Amid growing dispute over the new welfare initiative, the city has claimed that the allowance plan does not need to be discussed with the central government as it is part of the city’s autonomous welfare measures.

It further argued that the new ordinance would infringe on the local subsidy rule that asks cities to return the state’s financial subsidies only if they excessively spend them by violating regulations.

Before taking the case to the Constitutional Court, however, Park proposed that the city form a consultative body with the central government, political parties and civic groups to discuss and look for solutions for the youth unemployment. The Welfare Ministry did not immediately respond to this proposal.

By Lee Hyun-jeong (rene@heraldcorp.com)