The government of South Korea will commence the distribution of cash handouts to all citizens on July 21 as part of an initiative designed to stimulate domestic consumption, as announced by officials on July 5.
This initiative follows the Cabinet's approval of a supplementary budget amounting to 31.8 trillion won (approximately $23.3 billion), which was ratified by the National Assembly the previous day.
The cash handout program is a central element of the inaugural supplementary budget of the Lee Jae Myung administration.
According to the plan, all South Korean citizens residing in the country as of June 18, the day preceding the announcement, will receive a one-time payment of 150,000 won. Targeted assistance will be made available based on income levels.
Individuals from near-poverty households and single-parent families are to receive 300,000 won, while beneficiaries of the basic living allowance will be granted 400,000 won.
To foster balanced regional development, residents residing outside the greater Seoul area, including Gyeonggi Province and Incheon, will receive an additional 30,000 won. Furthermore, those living in 84 specifically designated rural and fishing communities experiencing population decline nationwide will be eligible for an additional 50,000 won.
Foreign nationals are generally excluded from this program; however, permanent residents, marriage immigrants, and individuals recognized as refugees are eligible recipients.
The application and disbursement of the handouts, referred to as "consumption coupons," will occur over an eight-week period concluding on September 12.
Citizens will have the option to receive the payment through various methods, including credit or debit cards, prepaid cards, or gift certificates issued by local governments.
A second round of payments is anticipated to take place 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 through a comprehensive income screening based on national health insurance premiums, with specific criteria to be announced in September.
Vice Interior Minister Kim Min-jae, who leads the interagency task force overseeing this program, stated, "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."
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