Seoul: Another round of a voucher scheme offering cash handouts to 90 percent of citizens will be implemented later this month, officials said Friday, as part of efforts to stimulate private consumption. Under the scheme, 90 percent of all citizens will be eligible for the handouts, worth 100,000 won (US$72) per person in the form of "consumption coupons," with applications to start on Sept. 22 and end on Oct. 31.
According to Yonhap News Agency, the move comes as applications for the first round of handouts, which provided 150,000 won to all citizens, is set to end Friday after beginning July 12. For the latest round of handouts, about 2.48 million individuals, categorized as belonging to "high net-worth households," will be excluded. Households that had a property tax base of 1.2 billion won or more last year and those with financial income exceeding 20 million won will not be eligible for the handouts. High-income earners will also be ineligible for the handouts, including individuals of single-person households who paid more than 220,000 won for national health insurance in June.
"(I) hope that the domestic consumption atmosphere revived by the first round of livelihood recovery consumption coupons will further expand with the second round," Interior Minister Yun Ho-jung said. As of 12 a.m. Friday, 98.9 percent of the population, or 50.05 million people, had applied for the first round of handouts, amounting to a total of 9.06 trillion won. On top of the 150,000 won offered to all citizens, additional support was given to low-income and single-parent households.
Both the first and second round of handouts can be used until Nov. 30, with the remaining balance to automatically expire. The government assessed that the first round of handouts had a positive impact on consumption, citing the Bank of Korea's Composite Consumer Sentiment Index that reached 111.4 in August, marking its highest level in over seven years.