300,000 Won for Second-Lowest Income Group and Single-Parent Families
400,000 Won for Basic Livelihood Security Recipients
Additional Payments for Non-Metropolitan Areas
Weekday Application System for the First Week
Second Phase Excludes Top 10% Income Bracket
The livelihood recovery consumption coupon, which provides 150,000 won to every citizen, will be distributed starting July 21. The second round of payments, which targets 90% of the population based on income screening, will begin on September 22.
On July 5, Acting Minister of the Interior and Safety Kim Minjae held a joint briefing with relevant ministries at the Government Complex Seoul and announced the "First Phase Distribution Plan for Livelihood Recovery Consumption Coupons."
Acting Minister Kim stated, "To quickly reinforce the economy's consumption capacity while enabling tailored support based on income level, the first phase will target all citizens, and the second phase will be distributed to citizens excluding the top 10% income bracket. The first phase will be launched first to promptly stimulate consumption, while the second phase will begin on September 22 after the income screening process."
The basic support amount is 150,000 won per person for all citizens. For those in the second-lowest income group and single-parent families, 300,000 won per person will be provided, and for basic livelihood security recipients, 400,000 won per person will be given.
There are also additional payments by region to promote balanced regional development. Residents of non-metropolitan areas, excluding Seoul, Gyeonggi, and Incheon, will receive an extra 30,000 won. Residents of rural and fishing communities facing population decline in 84 cities and counties at risk of extinction will receive an additional 50,000 won.
Eligible citizens can apply for the consumption coupon online or offline from 9:00 a.m. on July 21 until 6:00 p.m. on September 12. Applicants can choose to receive the coupon via credit/debit card, prepaid card, or regional gift certificate.
Applications can be submitted to the local government office responsible for the applicant's registered address as of the reference date. Adults born on or before December 31, 2006, can apply and receive the coupon individually. For minors, the head of household on the resident registration can apply and receive the coupon on their behalf. In cases where a minor is the head of a household with no adult members on the resident registration, the minor can exceptionally apply directly.
To prevent congestion and system overload during the first week of both online and offline applications, a weekday system based on the last digit of the applicant's birth year will be implemented: Mondays for those with birth years ending in 1 and 6; Tuesdays for 2 and 7; Wednesdays for 3 and 8; Thursdays for 4 and 9; Fridays for 5 and 0; and all applicants can apply on weekends.
For those with limited mobility, such as the elderly, local governments will offer a "visiting application" service, where officials visit the applicant's location to assist with the application and distribute the coupon.
Application Methods Differ by Payment Type
Citizens wishing to receive the coupon via credit or debit card can apply online through their card company's website, app, call center, or ARS, or visit a bank branch affiliated with their card. The consumption coupon will be credited to the card the day after application and will be distinguished from existing card points. When making a purchase at eligible stores, the coupon will be used before the regular card balance. After each use, the remaining coupon balance will be notified via text message or app notification.
Citizens wishing to receive the coupon as a mobile or card-type regional gift certificate can apply online through the app or website of the local government responsible for their registered address. The coupon will also be issued the day after application. For paper-based regional gift certificates or prepaid cards, applicants can visit the administrative welfare center (or community center, township office) for their registered address to apply and receive the coupon.
Regarding concerns that regional gift certificates could be abused through so-called "gift certificate laundering," Han Soonki, Director General for Local Finance and Economy at the Ministry of the Interior and Safety, said, "We already conduct regular inspections and crackdowns on participating stores, and users are also subject to sanctions. During this process, we will further strengthen inspections and crackdowns to thoroughly prevent fraudulent registration and distribution."
Usage Restricted to Registered Address; Some Industries Excluded
The use of the livelihood recovery consumption coupon is limited to the jurisdiction of the applicant's registered local government. Residents of special or metropolitan cities can use the coupon within their respective cities, while residents of provinces can use it in the city or county corresponding to their registered address. The government explained, "We have set the eligible stores and industries to support small business owners, while allowing users to choose and use the coupon conveniently according to their consumption preferences and circumstances."
Citizens who receive the coupon as a regional gift certificate can use it freely at all affiliated stores within the jurisdiction of their registered local government, just like previously purchased regional gift certificates. In rural areas without supermarkets, convenience stores, or similar businesses, Hanaro Mart (125 locations) has been included as an eligible store for gift certificate use.
Citizens who receive the coupon via credit/debit card or prepaid card can use it at small business establishments with annual sales of 3 billion won or less, except for certain industries. Excluded industries include large supermarkets, corporate supermarkets, department stores, duty-free shops, online shopping malls and delivery apps, entertainment and gambling businesses, and cash-convertible businesses.
The coupon must be used by November 30. Any unused balance after this period will be reclaimed by the national and local governments.
Second Phase: 100,000 Won for All Except Top 10% Income Bracket
The second phase will provide an additional 100,000 won per person to 90% of the population, selected through an income screening process using health insurance premiums. Due to the time required for screening, the second phase will start on September 22 and end on October 31.
The selection of recipients for the second phase will be based on health insurance premiums, covering 90% of the population. To ensure fairness between local and workplace health insurance subscribers, additional criteria will be established to exclude high-asset individuals beyond just health insurance premiums. These criteria will be announced in September.
Director Han explained about the additional criteria, "In 2021, the standard was set at 80%, and the high-asset standard was determined based on property tax base and financial income tax payments. Relevant ministries are discussing setting criteria related to property tax and financial income details."
The government expects that this supplementary budget, including the consumption coupon, will raise the economic growth rate by 0.2 percentage points. Cheon Jaeho, Director of Welfare and Safety Budget at the Ministry of Economy and Finance, said, "Through the supplementary budget, we expect a 0.1 percentage point increase in growth for the remaining half of this year, and about 0.2 percentage points over a full year."
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