Disaster Relief Fund Prepaid Card Limit Increased from 500,000 to 3,000,000 Won

[Asia Economy Reporter Song Hwajeong] The limit on disaster relief prepaid cards will be expanded from the current 500,000 won to 3,000,000 won.

On the 14th, the Financial Services Commission announced that the amendment to the Enforcement Decree of the Specialized Credit Finance Business Act containing this content has passed the Cabinet meeting.

The FSC has established an exception rule allowing the issuance limit of anonymous prepaid cards to be expanded from the current 500,000 won to 3,000,000 won when the government or local governments intend to provide support funds in the form of anonymous prepaid cards by specifying recipients, usage locations, and usage periods to respond to disasters. The validity period of this exception rule is until December 1.

Previously, in April 2020, the government temporarily raised the limit until the end of September of that year following requests from local governments, and in August last year, the limit was similarly raised until the end of January this year.

With the expansion of the issuance limit, it is expected to significantly reduce the production costs of prepaid cards and enable efficient administrative execution of the national support funds. Previously, when a household of five, consisting of parents and three children, received 1,160,000 won in emergency living stabilization support funds, at least three prepaid cards (500,000 won + 500,000 won + 160,000 won) were required, but under this exception rule, only one prepaid card worth 1,160,000 won will be needed.

The amendment to the Enforcement Decree of the Specialized Credit Finance Business Act, approved at the Cabinet meeting today, will take effect immediately upon promulgation. A Financial Services Commission official said, "This amendment is expected to contribute to the swift and efficient payment of the emergency living stabilization support funds currently being promoted by the government," adding, "The FSC will continue to strengthen interdepartmental cooperation for disaster response and actively take measures to improve necessary matters."