South Korea will begin distributing one-time cash handouts to all citizens starting July 21 in a major effort to jumpstart domestic spending and support vulnerable groups, officials confirmed over the weekend.
The initiative follows the passage of a 31.8 trillion-won ($23.3 billion) supplementary budget, marking the first of such under President Lee Jae Myung’s administration. The payouts, dubbed “consumption coupons,” are designed to inject fresh energy into the local economy, particularly as the country faces sluggish consumption and widening income gaps.
Every South Korean citizen living in the country as of June 18 will receive a base amount of 150,000 won. But the government has tailored additional support for the most economically challenged. Households near the poverty line and single parents will receive 300,000 won, while individuals on the basic living allowance will be granted 400,000 won.
To encourage regional economic balance, an extra 30,000 won will be given to those living outside the Seoul metropolitan area, and an additional 50,000 won will go to residents in 84 identified rural and fishing towns struggling with population decline.
While most foreign nationals are excluded from the program, exceptions include permanent residents, marriage migrants, and recognized refugees.
The payments can be accessed via credit or debit cards, prepaid cards, or local government-issued gift certificates. Distribution will run until September 12. A second round of aid is also on the horizon: between September 22 and October 31, an extra 100,000 won will be allocated to the bottom 90 percent of income earners based on health insurance contribution data.
“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 is leading the interagency task force managing the distribution.
