The new government has prepared a supplementary budget plan to provide all citizens with a 'living recovery consumption coupon' (living support fund) ranging from 150,000 won to 500,000 won per person. In designing the scale of the nationwide support fund, the government has combined the concept of 'universal welfare', which aims to provide support for all citizens, with the 'targeted support' method that offers more assistance to vulnerable groups. There is also interest in how the income tier classification varies, as the amount differs by income.
The amount of the living support fund given to ordinary citizens is 250,000 won per person. This applies to 43 million people, or 84% of South Koreans. For vulnerable groups, the amount increases. Those in the next lower income bracket, 380,000 people, will receive 400,000 won, while 2.71 million basic livelihood recipients will be given 500,000 won. Additionally, if they reside in areas facing population decline in rural and fishing regions (84 cities and counties, about 4.11 million people), an extra 20,000 won will be provided per person. A family of four living in rural areas facing population decline will receive a total of 2.08 million won.
In contrast, the 5.12 million people in the top 10% of income and asset distribution will only receive 150,000 won.
The payment method will be conducted in two stages. Initially, a one-time payment of 150,000 won will be given to all citizens, while those in the next lower income bracket will receive 300,000 won and basic livelihood recipients will get 400,000 won each. The government plans to quickly provide these funds to bolster consumption capacity by 8.5 trillion won in a short period.
In the second stage, an additional 100,000 won will be distributed to all citizens except for the top 10%. The eligibility for the top 10%, who will be excluded from the second payment, will be determined based on health insurance premiums and other criteria. For employed individuals, if their monthly insurance premium exceeds 400,000 won, they will likely fall into the top 10%. As for asset criteria, those with taxable standards of 900 million won or more and those owning dwellings valued at 2 billion won or more are expected to belong to the top 10%.
Payment options include local love gift certificates (local currency), prepaid cards, and credit/check cards, allowing recipients to choose their preferred method.
The places where the support funds can be used require further discussion. If local currency is selected, it is likely to be usable only at designated merchants. While prepaid and credit/check cards are expected to have broader usage compared to local currency, there is also the possibility of restricting usage to increase local currency utilization.
When is the payment expected? Initially, the Ministry of Economy and Finance plans to expedite payments within two weeks after handling the supplementary budget in the National Assembly. Vice Minister Kim In-kyun noted, "The first payment will universally be 150,000 won per person, with 300,000 won for the next lower income group and 400,000 won for basic livelihood recipients," and added, "Since the next lower income group and basic livelihood recipients have already been classified, payments can be made immediately, so we aim to issue the first payments within about two weeks." If discussions in the National Assembly proceed quickly, payments may begin as early as next month.
However, there is a possibility of delays due to the upcoming consultation procedures. Han Soon-ki, the head of the local government finance department at the Ministry of the Interior and Safety, said, "We will discuss the timing of payments and usage locations with relevant ministries and organizations and provide specific details as soon as possible."