The South Korean government will start distributing cash handouts to all citizens from July 21 in an effort to boost domestic spending and support low-income groups, officials confirmed on Saturday.
The decision follows the approval of a 31.8 trillion-won ($23.3 billion) supplementary budget by the National Assembly, a key initiative under President Lee Jae Myung’s new administration.
Each eligible South Korean citizen residing in the country as of June 18 will receive a one-time payment of 150,000 won. Additional support will be given to vulnerable groups: 300,000 won for near-poverty and single-parent households, and 400,000 won for recipients of the basic living allowance.
To encourage regional balance, people living outside the greater Seoul area—including Gyeonggi Province and Incheon—will receive an extra 30,000 won. Residents of 84 rural and fishing communities identified as experiencing population decline will get an additional 50,000 won.
Foreign nationals are not included in the programme, except for permanent residents, marriage immigrants, and recognized refugees.
The payments, referred to as “consumption coupons,” will be distributed over eight weeks until September 12. Citizens can choose to receive them through credit or debit cards, prepaid cards, or local gift certificates.
A second round of payments is planned between September 22 and October 31. This will provide an additional 100,000 won to the bottom 90 percent of income earners, based on a detailed income review using national health insurance data. Specific criteria will be released in September.
Vice Interior Minister Kim Min-jae, who leads the interagency task force overseeing the programme, said the payments are expected to stimulate the economy and assist struggling families. “We will ensure thorough preparations for the rollout of these payments so that they can serve as a catalyst for economic recovery,” he said.
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