Differences from the 2020 and 2021 National Support Payments
Tailored Support by Income Level... Refugees Also Included
Restrictions on Use at "Luxury Stores"
The "Livelihood Recovery Consumption Coupon" policy under the Lee Jaemyung administration differs from the emergency disaster relief and national support payments provided during the COVID-19 pandemic, notably by varying the amount of support according to income level.
According to the payment plan for the Livelihood Recovery Consumption Coupon announced by the government on July 5, some of the controversial aspects of the national support payments distributed in 2020 and 2021 have been revised and supplemented.
First, the Livelihood Recovery Consumption Coupon will be distributed to all citizens, but the amount will be tailored to income levels. In the first round, every citizen will receive 150,000 won, while those in the near-poor group will receive 300,000 won, and basic livelihood security recipients will receive 400,000 won. In the second round, an additional 100,000 won consumption coupon will be provided to 90% of the population, excluding the top 10% income bracket, to ensure more substantial support.
Previously, the government provided support funds under the names of emergency disaster relief and national support payments in 2020 and 2021, when the COVID-19 pandemic was at its peak. The 2020 emergency disaster relief payment was distributed to all citizens, but there was criticism that even high-income earners received support. In 2021, the eligibility criteria were narrowed to "the bottom 80% of income earners plus alpha."
Another change this time is the provision of additional payments by region to promote balanced development. An extra 30,000 won will be given to residents in non-metropolitan areas, and 50,000 won to those in rural and fishing population-decline areas. Unlike the COVID-19 period, when support was applied for and distributed per household, this time, individuals must apply for and receive the consumption coupon personally.
The policy regarding foreigners has also changed. In 2020 and 2021, support was only given to foreigners who were family members of Korean nationals, permanent residents, or marriage migrants. This time, "recognized refugees" are included as beneficiaries for the first time. Last year, the Constitutional Court ruled that the government's exclusion of refugees from COVID-19 disaster relief payments violated the right to equality and was unconstitutional.
There have also been changes to where the support funds can be used compared to 2020 and 2021. In 2020, there were cases where emergency disaster relief payments were used at luxury stores, Apple, and IKEA, which became a problem. The government then restricted usage in 2021 to merchants affiliated with local gift certificate programs. For this round of consumption coupons, usage is limited to small business stores with annual sales of 3 billion won or less, and the coupons cannot be used at large supermarkets, department stores, large foreign-owned stores, entertainment and gambling businesses, or cash-convertible businesses.
Han Soonki, Director General of the Local Finance and Economy Bureau at the Ministry of the Interior and Safety, said at a joint briefing at the Seoul Government Complex on this day, "To address issues such as 'purchasing luxury goods with support funds' that were pointed out during the 2020 emergency disaster relief payments, large foreign-owned stores have also been designated as ineligible businesses," adding, "To make it easier for citizens to identify where the Livelihood Recovery Consumption Coupons can be used, we will work with local governments to attach 'Livelihood Recovery Consumption Coupon Accepted' stickers to eligible stores."
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