South Koreans Get Ready: Cash Handouts Begin This Week!

The first round of applications for the government’s nationwide cash handout program kicked off Monday and will run through September 12, the Interior Ministry announced.

This economic stimulus initiative aims to boost domestic spending by providing a one-time payment of 150,000 KRW (approximately $112.50) to all South Korean citizens who were residing in the country as of June 18, the day before the plan was unveiled.

While foreigners are generally excluded from the program, those registered on resident cards who subscribe to the state health insurance are eligible. This includes permanent residents, marriage immigrants, and recognized refugees covered by the national health insurance scheme.

The Ministry stated that the application process and distribution of the handouts, dubbed “consumption coupons,” will span an eight-week period ending at 6 p.m. on September 12. Coupons will be issued the day after application and will remain valid until November 30. However, they cannot be used at major supermarkets, department stores, duty-free shops, online retailers, or gambling establishments.

Additional targeted assistance will be provided based on income levels. Near-poverty households and single-parent families will receive 300,000 KRW (approximately $225) per individual, while basic living allowance recipients will be granted 400,000 KRW (approximately $300) per person.

In an effort to promote balanced regional development, residents outside the greater Seoul area, including Gyeonggi Province and Incheon, will receive an extra 30,000 KRW (approximately $22.50). Those living in 84 designated rural and fishing communities facing population decline will be granted an additional 50,000 KRW (approximately $37.50).

Recipients can choose to receive their payments via credit or debit cards, prepaid cards, or local government-issued gift certificates.

To prevent system overload and crowding at community centers, online and offline applications will be accepted on specific days this week based on the last digit of an individual’s birth year. Those with birth years ending in 1 and 6 can apply on Monday, 2 and 7 on Tuesday, 3 and 8 on Wednesday, 4 and 9 on Thursday, and 5 and 0 on Friday.

A second round of payments is scheduled between September 22 and October 31, providing an additional 100,000 KRW (approximately $75) to the bottom 90 percent of income earners. (Yonhap)