Seoul: South Korea will begin distributing cash handouts to all citizens starting July 21 as part of a government initiative aimed at stimulating domestic consumption, officials announced on Saturday. This initiative is a key measure under the first supplementary budget of the Lee Jae Myung administration, with the Cabinet having approved a 31.8 trillion-won ($23.3 billion) supplementary budget, which was passed by the National Assembly on Friday.
According to Yonhap News Agency, the plan stipulates that all South Korean citizens residing in the country as of June 18 will receive a one-time payment of 150,000 won. This broad disbursement is intended to boost consumer spending nationwide. Additional targeted assistance will be provided based on income levels, with individuals in near-poverty households and single-parent families receiving 300,000 won, and recipients of the basic living allowance getting 400,000 won.
To promote balanced regional development, an extra 30,000 won will be granted to residents outside the greater Seoul area, including Gyeonggi Province and Incheon. Furthermore, those living in 84 designated rural and fishing communities facing population decline will receive an additional 50,000 won.
A second phase of payments is scheduled between September 22 and October 31, providing an additional 100,000 won to the bottom 90 percent of income earners. Eligibility for this round will be determined by a detailed income screening based on national health insurance premiums, with criteria to be announced in September.
Vice Interior Minister Kim Min-jae, who heads the interagency task force overseeing the program, stated that thorough preparations would be ensured for the rollout of these payments to catalyze economic recovery by boosting consumption and supporting those in need.