Merchants at Inwang Market in Seodaemun-gu watch a live broadcast on July 3 as President Lee Jae Myung holds a press conference marking his first 30 days in office. - Photo: Yonhap
SEOUL: South Korea will begin distributing cash handouts to all citizens July 21 as part of a government initiative aimed at stimulating domestic consumption, officials said Saturday (July 5).
The move follows the Cabinet's approval of a 31.8 trillion-won ($23.3 billion) supplementary budget, passed by the National Assembly on Friday.
The handout programme is a key part of the first supplementary budget of the Lee Jae Myung administration.
Under the plan, all South Korean citizens residing in the country as of June 18, the day before the plan was announced, will receive a one-time payment of 150,000 won.
Additional targeted assistance will be provided based on income levels.
Individuals in near-poverty households and single-parent families will receive 300,000 won, while recipients of the basic living allowance will get 400,000 won.
To promote balanced regional development, residents outside the greater Seoul area, including Gyeonggi Province and Incheon, will receive an extra 30,000 won.
Those living in 84 designated rural and fishing communities facing population decline nationwide will be granted an additional 50,000 won.
Foreigners are excluded from the programme, in principle, while permanent residents, marriage immigrants and individuals recognized as refugees are included among the eligible recipients.
The application and distribution of the handouts, called "consumption coupons," will be carried out over an eight-week period till Sept. 12.
Citizens can choose to receive the payment through one of several methods: credit or debit cards, prepaid cards or local government-issued gift certificates.
A second round of payments, scheduled between Sept. 22 and Oct. 31, will provide an additional 100,000 won to the bottom 90 percent of income earners.
Eligibility will be determined by a detailed income screening based on national health insurance premiums, with criteria to be announced 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 programme. - The Korea Herald/ANN
