Consumption Coupons of 150,000 to 500,000 Won for All Citizens... Amount Adjusted by Income Level [New Government Supplementary Budget]

Only 150,000 Won for the Top 10 Percent
25,0000 Won for 42.96 Million Ordinary Citizens
Customized Support and Step-by-Step Distribution

The government will distribute consumption coupons worth up to 500,000 won per person to boost domestic demand and stabilize people's livelihoods. While the government will provide consumption coupons to all citizens, it has prepared a plan to adjust the amount based on income levels. The second supplementary budget also includes an additional 600 billion won in state funding to support the issuance of regional gift certificates nationwide. To revive the sluggish construction sector, a budget of 2.7 trillion won has been allocated.

According to the "New Government Supplementary Budget for Economic Revitalization and Livelihood Stabilization" announced by the Ministry of Economy and Finance on June 19, the government has decided to distribute a total of 10.3 trillion won in livelihood recovery consumption coupons to all citizens. This measure is intended to address sluggish consumption and strengthen households' spending capacity.

The consumption coupons will be distributed differentially according to income. First, every citizen will receive a coupon worth 150,000 won per person. In addition, second-lowest income households and basic livelihood security recipients will receive 300,000 won and 400,000 won respectively in the first round. Residents of 4.11 million people in 84 rural areas at risk of population extinction will receive an additional 20,000 won. Subsequently, an additional 100,000 won will be provided in a second round to the bottom 90% of income earners, based on health insurance premiums and other criteria. The top 10% of high-income earners, totaling 5.12 million people, will only receive the first round and will be excluded from the additional payment. As a result, most citizens (42.96 million people) will receive 250,000 won, second-lowest income households (380,000 people) will receive 400,000 won, and basic livelihood security recipients (2.71 million people) will receive 500,000 won in coupons.

Recipients can choose to receive the coupons as regional gift certificates, prepaid cards, or credit/debit cards, but not as cash. Lim Kigun, Second Vice Minister of Economy and Finance, explained that "cash may not be circulated and could remain unspent, so the government aims to stimulate immediate consumption and boost the economy by issuing the coupons as gift certificates or cards." The government is forming a joint task force with relevant ministries to determine the specific details of the coupon distribution, including timing, eligibility, and places of use. Vice Minister Lim added, "The consumption coupons and regional gift certificates can be used at the same affiliated merchants, and inappropriate places such as entertainment establishments will be excluded."

Expansion of Local Currency Issuance... Record High of 29 Trillion Won

The second supplementary budget includes a 1 trillion won consumption incentive fund to support the issuance of local currency (regional gift certificates). The government will increase state funding for regional gift certificates such as Seoul Sarang Gift Certificate (Seoul) and Yeominjeon (Sejong) by an additional 600 billion won, on top of the 400 billion won in the first supplementary budget, bringing the total to 1 trillion won. This will expand the issuance of local currency to 29 trillion won this year, the largest amount ever.

The government will raise the state subsidy rate by region, increasing the consumer discount rate to as much as 15%. For the first time, a 2% state subsidy will be introduced for non-subsidy local governments such as Seoul, which have high fiscal self-reliance and do not receive general grants. Consumers will experience a discount rate of 10% in the Seoul metropolitan area, 13% in non-metropolitan areas, and up to 15% in depopulation areas. In addition, a new budget of 326.1 billion won has been allocated for a 10% (up to 300,000 won) rebate on the purchase of high-efficiency home appliances. Another 77.8 billion won will be used to provide 7.8 million discount coupons for five sectors: accommodation, movies, performances, sports, and others. Measures to boost domestic demand, such as doubling the number of vacation support recipients among SME workers, will receive 8.9 billion won in funding.

Yonhap News

2.7 Trillion Won to Revitalize the Construction Sector

The government will inject 2.7 trillion won to revitalize the sluggish construction sector. First, it will identify as many needs as possible that can be executed within this year and allocate 1.4 trillion won to support the early start and completion of social infrastructure projects such as railways and ports. A total of 712.4 billion won will be used to accelerate the construction of national backbone networks such as the Pyeongtaek-Osong second double-track railway and the Honam high-speed railway. Another 162.9 billion won will be invested in safety improvements for aging general railway structures and other SOC (social overhead capital) safety projects. To prevent disasters from typhoons and floods during the summer, 348.5 billion won will be allocated for river maintenance and drainage system repairs.

The government will also support project financing (PF) to address the contraction of the private housing market and the funding difficulties of small and medium-sized construction companies. For projects facing financing challenges, 500 billion won will be provided through special PF guarantees and government-backed REITs. In addition, 300 billion won will be allocated to purchase 10,000 unsold homes under repurchase agreements before completion by 2028, aiming to ease liquidity for local construction companies.

A total of 1.2 trillion won will be newly allocated to promote investment. In particular, 900 billion won will be earmarked to encourage investment in venture and small and medium-sized enterprises in new industries. Support for the Korea Fund of Funds in areas such as artificial intelligence (AI) and content will be expanded to 1.1 trillion won through 585 billion won in funding. An additional 300 billion won will be allocated to expand investment in AI and renewable energy. The government will support the transition to AX in six key areas for AI model demonstration and technology adoption, and will promote the early commercialization of domestic neural processing units (NPUs) through development support.