By Ctionssouth Korea
ReutersFILE PHOTO: A person holds a South Korean flag in front of the National Assembly in Seoul, South Korea, December 6, 2024.
The South Korean government announced it will begin distributing cash handouts to all citizens from July 21, as part of a major effort to revitalise domestic consumption amid global economic uncertainties, the Korea Herald reported.The initiative follows the passage of a 31.8 trillion-won (USD 23.3 billion) supplementary budget by the National Assembly.The move marks a central pillar of the Lee Jae Myung administration’s first economic relief package.The South Korean English daily reported that under the plan, every South Korean citizen residing in the country as of June 18 — the day before the policy was unveiled — will receive a one-time payment of 150,000 won (approx. USD 110).The handouts, referred to as “consumption coupons,” are aimed at driving spending in local economies and will be distributed over an eight-week period until September 12.Live EventsIn addition to the universal payment, targeted assistance will be provided to vulnerable groups. About 400,000 won for recipients of the national basic living allowance, and 300,000 won for near-poverty households and single-parent families.To promote regional balance and population retention, citizens living outside the Seoul metropolitan area (including Gyeonggi Province and Incheon) will receive an extra 30,000 won, while those in 84 designated rural and fishing villages experiencing population decline will be granted an additional 50,000 won.Although foreigners are excluded, the program makes exceptions for permanent residents, marriage immigrants, and recognized refugees, all of whom are eligible to receive the payouts.Citizens will have the option to receive the handouts via credit or debit cards, prepaid cards, or local government-issued gift certificates, making it accessible through a wide range of platforms.A second round of payments is scheduled for September 22 to October 31, targeting the bottom 90 percent of income earners, who will receive an additional 100,000 won. Eligibility for this phase will be determined by an income screening process based on national health insurance premiums, with detailed guidelines to be released in September.”We will ensure thorough preparations for the rollout of these payments so that they can serve as a catalyst for economic recovery by boosting consumption and supporting those in need,” said Vice Interior Minister Kim Min-jae, who heads the interagency task force overseeing the program, quoted by the news platform. (You can now subscribe to our Economic Times WhatsApp channel)
Read More News onSouth Korea cash handoutsLee Jae Myung administration2023 South Korea economic relief packagefinancial assistance for citizensconsumption coupons in South Koreatargeted assistance for vulnerable groupsJuly 21 cash distributioneconomic recovery initiativesSouth Korea supplementary budgetNational Assembly
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onSouth Korea cash handoutsLee Jae Myung administration2023 South Korea economic relief packagefinancial assistance for citizensconsumption coupons in South Koreatargeted assistance for vulnerable groupsJuly 21 cash distributioneconomic recovery initiativesSouth Korea supplementary budgetNational Assembly(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless