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Civic group states that, "the proposed increase in the social welfare budget is hot air."

It seems that President Kim Dae Jung's promise to develop a "productive welfare system" during his Independence Day speech was made in vain. Labor groups protested the government's decision on the 10th to increase next year's welfare budget by 4.5% over this year's budget of 4.6 trillion won.

On the 13th, at a press conference held at the People's Solidarity for Participatory Democracy, twenty two labor and civic groups, including the Korean Confederation of Trade Unions and the Confederation of Women's Group, severely criticized the government's welfare policy. On the 14th, members of the labor and civic groups demonstrated in front of the Ministry of Planning and Budget and demanded that next year's welfare budget be substantially increased.

Furthermore, the budget for the unemployed was decreased.

Approximately one hundred members of labor and civic groups joined in the demonstration. They argued that "On Independence day, President Kim promised to develop a productive welfare system by the year 2003. If this is to be realized, the Ministry of Welfare should increase the welfare budget by at least 10% each year. However, because of a compromise between political parties, the welfare budget for next year will be increased by only 4.5%, which is highly insufficient. The budget was made without real consideration so that it is extremely doubtful that a productive welfare will come into existence."

The demonstrators added that, "This budget does not reflect the Guarantee of the Nation's Basic Life Systems, which will be adopted and administered beginning in December of next year. The initiation of the Guarantee of the Nation's Basic Life Systems is in jeopardy.

Ji Eun-Joo, the representative of the Confederation of Women's Group argued that "the budget for next year has increased aid to women by 69.7%; however, aid for children, childcare, and unemployed women are hardly even mentioned. Hence, the actual overall increase is only 29%."

On the other hand, the government reduced aid to the unemployed by 30.5% in next year's budget. The government cited economic recuperation as a reason for the cut. For this Hue Young-Gu, vice-president of Democratic Labor Union, this was not acceptable. He argued that, "Considering the increasing gap in income and the soaring poverty index, reducing the budget for the unemployed should not occur. This will result in a governmental policy that does little to prevent unemployment, and will ultimately lead to more unemployment."

For the above reasons, labor and civic groups urged the government to redo next year's budget and announced that unless the government met their demands, they would have to struggle with all of the labor and civic groups in the country. Originally, the productive welfare system proposed by President Kim promised to guarantee the basic quality of life. The system was supposed to begin by increasing the aid and life amenities of the people living and poverty, which currently accounts for about 2 million people. By the year 2003, the system is to be expanded to cover other alienated classes such as the handicapped. The system also includes a plan for national medical insurance and free education for middle and high school students.