Seoul: President Lee Jae Myung on Tuesday urged the government to intensify efforts to boost domestic consumption while keeping inflation in check. This call to action came during a Cabinet meeting as the government initiated the distribution of cash handouts, known as "consumption coupons," after the first round of applications was accepted on Monday.
According to Yonhap News Agency, the program provides a one-time payment of 150,000 won (US$108), with residents outside the greater Seoul area and low-income households eligible for payments of up to 450,000 won. President Lee emphasized that while these consumption coupons offer some income support, their primary aim is to stimulate consumption. He urged each ministry to develop additional programs to encourage domestic spending.
Lee also addressed the potential risk of inflation, urging the government to implement measures to control rising prices. He noted that even prior to the distribution of coupons, prices were increasing due to various factors and called for swift and firm governmental action to manage inflation effectively.
The presidential office has also cautioned against the illegal reselling or cashing in of consumption coupons. Presidential spokesperson Kang Yu-jung reported identifying cases where prepaid cards were traded on secondhand market apps. She emphasized that individuals engaging in such transactions could be compelled to return all or part of the cash handout and face penalties and future restrictions on subsidy programs.
Additionally, Kang warned that merchants who fraudulently claim the coupons without actual sales could face severe consequences, including up to three years in prison, fines of up to 20 million won (US$14,400), and revocation of their registration.