South Korea to launch nationwide cash handouts from July 21 to boost spending

South Korea will begin distributing cash handouts to all citizens starting July 21 as part of a government initiative aimed at boosting consumer spending, officials confirmed on July 5.

The measure follows the Cabinet’s approval of a supplementary budget worth 31.8 trillion won (approximately $23.3 billion), which was passed by the National Assembly on July 4, Caliber.Az reports, citing South Korean media.

The handout scheme is a key element of President Lee Jae Myung’s administration’s first supplementary budget.

Under the programme, all South Korean citizens residing in the country as of June 18—the day before the plan was announced—will receive a one-time payment of 150,000 won (roughly $110).

Additional targeted support will be provided based on income levels. Individuals in near-poverty households and single-parent families will receive 300,000 won (about $220), while recipients of the basic living allowance will get 400,000 won (around $290).

To promote balanced regional growth, those living outside the greater Seoul area—including Gyeonggi Province and Incheon—will receive an extra 30,000 won (roughly $22). Residents in 84 designated rural and fishing communities affected by population decline will be given an additional 50,000 won (about $37).

Foreign nationals are excluded from the scheme in principle, though permanent residents, marriage immigrants, and recognised refugees are among those eligible.

The payments, referred to as “consumption coupons,” will be distributed over an eight-week period ending September 12. Citizens can choose to receive the funds through credit or debit cards, prepaid cards, or local government-issued gift certificates.

A second round of payments is scheduled between September 22 and October 31, providing an additional 100,000 won (approximately $73) to the bottom 90 percent of income earners. Eligibility will be determined based on national health insurance premiums, with detailed criteria to be released in September.

“We will ensure thorough preparations for the rollout of these payments so that they can serve as a catalyst for economic recovery by boosting consumption and supporting those in need,” said Vice Interior Minister Kim Min-jae.

By Aghakazim Guliyev