South Korea to distribute cash to citizens

(Dan Tri) - From July 21, South Korea will deploy its largest cash aid package ever to revive the economy and share the spending burden with the people.

From July 21, the Korean government will begin distributing a minimum cash payment of 150,000 won (about 2.9 million VND) to each citizen, according to the Korea Times.

All South Koreans who have registered as residents as of June 18 will receive the money, which the government says is aimed at stimulating spending nationwide.

Particularly, disadvantaged groups will receive more. Specifically, near-poor households and single-parent families will receive 300,000 won (about 5.7 million VND). Meanwhile, those receiving basic living allowance can receive 400,000 won (about 7.7 million VND).

Residents living in suburban areas of Seoul, including Gyeonggi Province and Incheon, will receive an additional 30,000 won (about VND570,000), while residents in 84 rural areas facing population decline will receive an additional 50,000 won (about VND960,000).

The "livelihood recovery coupon" program is considered President Lee Jae Myung's first major economic policy since taking office on June 4.

People can apply for vouchers online or in person from July 21 to September 12. The money will then be deposited into a credit, debit, prepaid card or issued as a local gift certificate. The vouchers are valid until November 30, and the government will collect any unused funds.

Each South Korean citizen will receive a minimum of 150,000 won (Photo: Reuters).

The second round of the cash assistance program will run from September 22 to October 31, and those in the bottom 90 percent of the nation’s income bracket will receive an additional 100,000 won. Eligible individuals will be determined through a detailed income screening process based on their national health insurance premiums, with criteria to be announced in September.

"We are committed to thoroughly preparing for the implementation of these payments so that they can become a catalyst for economic recovery by boosting consumption and supporting those in need," Vice Interior Minister Kim Min-jae, who heads the interagency team overseeing the program, told reporters.

Previously, as mayor of Seongnam city, President Lee Jae Myung implemented programs to distribute 1 million won (about 19.2 million VND) to young people aged 19-24.

During his presidential campaign, he pledged to provide 250,000 won (about 4.8 million VND) to each citizen. However, after taking office, concerns about fiscal sustainability led him to shift to a more comprehensive approach, aiming to boost consumption rather than focusing solely on welfare policy.

South Korea's GDP unexpectedly fell 0.2 percent in the first quarter from the previous quarter. The Bank of Korea forecasts full-year growth of only 0.8 percent.

Source: https://dantri.com.vn/kinh-doanh/han-quoc-sap-phat-tien-mat-cho-nguoi-dan-20250706234348004.htm