The South Korean government has announced a fresh round of financial relief aimed at supporting low and middle-income households as the country continues to face economic pressure caused by soaring fuel prices triggered by the ongoing Middle East crisis.
Government officials confirmed on Monday that the National Assembly approved an additional budget bill worth 26.2 trillion won, approximately 17.8 billion dollars, to help cushion the impact of rising living costs on citizens.
A major highlight of the new budget package is the expansion of the government’s cash support programme targeted at the bottom 70 percent of income earners across the country.
The latest intervention comes after the first phase of the initiative, introduced in April, provided financial assistance of up to 600,000 won to vulnerable groups, including recipients of basic livelihood security benefits.
Authorities disclosed that applications for the second phase of the relief payments will officially begin next Monday.
Under the newly approved package, eligible residents living within the greater Seoul metropolitan area are expected to receive 100,000 won each. Meanwhile, citizens residing in regions facing population decline may receive higher support payments of up to 250,000 won.
According to government officials, eligibility for the programme will be determined based on each household’s national health insurance contributions recorded in March this year.
For single-person households, individuals whose monthly insurance contributions were 130,000 won or below will qualify for the support package.
In addition, authorities stated that single-person households with an estimated annual income of 43.4 million won or less are also expected to meet the requirements for the financial assistance programme.
The South Korean government says the relief package is part of broader efforts to stabilize household finances, stimulate consumer spending, and reduce the economic burden on citizens amid growing global uncertainty and energy market volatility caused by tensions in the Middle East.
As global fuel prices continue to fluctuate, several countries are now considering similar economic support measures to protect vulnerable populations from worsening inflation and rising living costs.
