The government will provide a "high oil price damage support payment" to 70% of the public in response to the Middle East-driven shock of high oil prices, a strong dollar, and high inflation. The payment will range from a minimum of 100,000 won to a maximum of 600,000 won per person.
Minister of the Interior and Safety Yoon Ho-jung said at a briefing on the 11th, "The triple burden of high oil prices, a strong dollar, and high inflation is surging toward regional economies like a powerful wave," adding, "At times like this, fiscal policy must take the lead as a breakwater to protect livelihoods."
According to the Ministry of the Interior and Safety, the total size of the payment is 6.1 trillion won, with 4.8 trillion won from the central government and 1.3 trillion won from local governments.
Those eligible are the bottom 70% by income. Basic livelihood security recipients will receive 550,000 won, and the near-poverty group and single-parent families will receive 450,000 won, with an additional 50,000 won for those living outside the Seoul metropolitan area.
Other members of the public will receive 100,000 won in the Seoul metropolitan area, 150,000 won outside the metropolitan area, 200,000 won in designated preferential areas with declining populations, and 250,000 won in special support areas, depending on their place of residence.
Payments will be made in two rounds. The first round for vulnerable groups will begin on Apr. 27, and the second round for the general public, after income screening, will be open for application and payment starting May 18.
The Minister said, "As the burden of rising oil prices affects all aspects of daily life, a preemptive and swift response is necessary," emphasizing, "We will ensure this payment becomes a solid support to protect the lives of ordinary people."
Applications will be available both online and offline. Recipients can choose to receive the payment via credit/debit card, local gift certificate, or prepaid card, and it will be paid the day after application.
To revitalize regional economies, the payment can only be used in the jurisdiction of the address on record. Eligible merchants are limited to small businesses with annual sales of 3 billion won or less, and entertainment and gambling-related businesses are excluded. The usage deadline is through Aug. 31.
Starting Apr. 20, the government will provide advance notice of eligibility and amounts through the "National Secretary notification service."