Seoul, South Korea – The South Korean government has announced the first phase of its ambitious "People's Livelihood Recovery Consumption Coupon" program, set to begin disbursements on July 21. This initiative, unveiled by government officials at a joint briefing in the Seoul Government Complex on Friday, aims to stimulate domestic consumption and provide financial relief to citizens amidst ongoing economic challenges.

The program's design involves a two-tiered distribution approach. The initial phase will see a maximum payout of ₩450,000 per eligible individual. A subsequent second phase, scheduled for September 22, will provide an additional ₩100,000 to the bottom 90% of income earners.

First Phase Payouts and Eligibility 

Eligibility for the first phase is broad, extending to all South Korean citizens residing domestically as of June 18. The base payout for every individual is ₩150,000. However, specific vulnerable groups will receive higher amounts:

Basic Livelihood Security recipients: ₩400,000
Quasi-poor households and single-parent families: ₩300,000
Beyond these base amounts, geographical incentives are also in place to encourage regional spending and support less populated areas. Residents outside of the Seoul, Gyeonggi, and Incheon metropolitan areas will receive an additional ₩30,000. Furthermore, residents of designated rural and depopulated areas will be granted an extra ₩50,000, bringing the potential maximum for some individuals to ₩450,000.

Application Process and Usage 

Applications for the consumption coupons will be open from July 21 to September 12. Citizens can apply through various channels, including credit card company applications and websites, local currency gift certificate applications, and local administrative welfare centers (eup/myeon/dong community centers). To manage initial demand and ensure a smooth process, a five-day staggered application system based on the birth year's last digit will be implemented during the first week. For example, individuals born in a year ending in '4' would be eligible to apply on Thursdays.

Recipients have the flexibility to choose their preferred method of receiving the coupons: credit/debit cards, pre-paid cards, or local currency gift certificates. Once applied for, the coupons can be used starting the day after application.

However, there are specific guidelines regarding usage. The coupons are primarily intended to support local businesses and are restricted to use within the jurisdiction of the recipient's registered address. To prevent misuse and focus on essential consumption, large-scale retailers, department stores, and entertainment establishments are explicitly excluded from eligible merchants. This targeted approach aims to funnel funds directly into small and medium-sized enterprises (SMEs) and local economies, maximizing the program's impact on vulnerable businesses. The government has set a clear deadline for usage: all coupons must be spent by November 30. Any unspent amounts will be reclaimed by the government, emphasizing the program's goal of immediate consumption stimulus rather than long-term savings.

Second Phase Details and Support Services

The second phase of the program, providing an additional ₩100,000 per person to the bottom 90% of income earners, is scheduled to run from September 22 to October 31. Eligibility for this phase will be determined based on factors such as health insurance premiums and the value of personal assets, aiming to precisely target those who need the most support. The specific criteria for selecting beneficiaries in this phase will be announced separately in September.

To ensure broad accessibility and address potential difficulties, the government is establishing comprehensive support services. Starting July 14, a National Secretary Notification Service and a dedicated call center will be operational. Additionally, a "visit-to-apply service" will be offered to assist the elderly, individuals with disabilities, and others who may face challenges in applying through conventional methods. In a proactive measure to combat phishing and other scams, the government has stated that official communication regarding the coupons will not include any external links in text messages, urging citizens to remain vigilant against fraudulent schemes.

Kim Min-jae, Vice Minister of the Interior and Safety, reiterated the government's commitment to the program's success. "We are thoroughly preparing to ensure that the People's Livelihood Recovery Consumption Coupon achieves its dual objectives of stimulating consumption and providing income support," he stated during the briefing. The initiative is a key part of the government's broader strategy to reinvigorate the national economy and alleviate the financial burden on households.