Government approves new relief package
South Korea is preparing to launch a second round of cash assistance for millions of citizens as fuel prices continue to rise amid the ongoing conflict in the Middle East.
Officials said the support package targets the bottom 70 per cent of income earners across the country.
The relief plan forms part of a 26.2 trillion-won supplementary budget recently approved by the National Assembly of South Korea.
Authorities say the measure aims to reduce economic pressure on households and support local consumption.
Millions expected to benefit
Under the programme, nearly 36 million people are expected to receive financial support.
The government had earlier launched a similar programme in April. During that phase, vulnerable groups and welfare recipients received up to 600,000 won.
Officials confirmed that applications for the second round will begin next Monday.
Payment amounts vary by location
Eligible residents in the greater Seoul area will receive 100,000 won each.
Meanwhile, people living in regions with declining populations may receive up to 250,000 won.
Authorities said the higher payments aim to support struggling local communities outside major urban centres.
Eligibility linked to health insurance payments
The government will determine eligibility using national health insurance payments recorded in March this year.
For single-person households, those who paid 130,000 won or less in insurance contributions will qualify for assistance.
Officials also noted that single-person households earning 43.4 million won annually or less are likely to qualify.
However, a welfare ministry official explained that final decisions will depend mainly on health insurance payment records.
Wealthier households excluded
The government plans to exclude some high-income households from the programme.
According to officials, about 930,000 households will not qualify. This includes families with assets above 1.2 billion won as of 2025.
Households that earned more than 20 million won in financial income during 2024 will also be excluded.
Applications open until July
Authorities said applications for the programme will remain open through July 3.
Recipients can access the funds through credit cards, debit cards, prepaid cards, or local currency vouchers.
The government also placed limits on where the money can be spent.
Funds restricted to local businesses
Officials said beneficiaries can only use the assistance at small local businesses.
Eligible stores must record annual sales of 3 billion won or less.
The funds will expire on August 31, encouraging citizens to spend quickly and stimulate economic activity.
Government hopes to revive consumption
Yun Ho-jung said the support package aims to reduce financial burdens caused by high oil prices.
He added that the programme should also help revive weak consumer spending.
Authorities believe the measure will support small businesses and reduce pressure on low- and middle-income households.
