A fixed-rate system will be introduced for the 'K-pass,' a service that allows users to receive some of their transportation expenses back. With just 50,000 to 60,000 won a month, users can now access all buses and subways nationwide.
The government confirmed the details of the '2026 budget proposal' during a Cabinet meeting on the 29th. With the newly revised K-pass, users can utilize up to 200,000 won worth of subway and bus services nationwide for 62,000 won (55,000 won for teenagers, seniors, families with multiple children, and low-income individuals).
For example, if you spent 200,000 won on transportation using the K-pass this month, you would receive a refund of 138,000 won (200,000 - 62,000 won). Conversely, if you only spent 50,000 won in a month, which is less than 62,000 won, you would receive a refund of 10,000 won (50,000 * general K-pass refund rate of 20%).
Transportation expenses exceeding 200,000 won must be fully borne by the user, but the government anticipates that users exceeding the monthly limit of 200,000 won will be within 0.1%. If transportation costs include relatively expensive GTX and wide-area buses, the threshold for receiving a refund will increase from 62,000 won to 100,000 won (90,000 won for teenagers, seniors, families with multiple children, and low-income individuals). The government has raised the refund rate for seniors from the previous 20% to 30% with the introduction of the fixed-rate system for the K-pass.
Additionally, to stabilize housing for low-income individuals, 194,000 public housing units will be supplied this year. The plan is to provide a total of 1.1 million units by 2030, focusing on vulnerable groups such as youth, newlyweds, and seniors.
This budget proposal also includes a plan to provide a 250,000 won business stability voucher to small businesses with annual sales below 100 million won, which is the threshold for simplified taxation. The vouchers, aimed at stabilizing management, can only be used for utility bills, insurance premiums, and similar expenses.
At the same time, the government will support the issuance of local love gift certificates amounting to 24 trillion won to boost sales for small businesses. The government has adjusted the national subsidy rates based on regional conditions. The national subsidy rate will increase from 2% to 3% in the capital area, from 2% to 5% in non-capital areas, and from 5% to 7% in regions experiencing population decline.
The discount rate is also lowest in the capital area, at 8%, while it increases to 10% in non-capital areas and 12% in regions of population decline. Digital Onnuri gift certificates will be issued at a record high of 4.5 trillion won.
To enhance the competitiveness of small businesses, the government will provide support in three areas: exports, artificial intelligence (AI), and online services. In relation to exports, 100 promising small businesses will be selected to receive business funds of up to 100 million won for overseas expansion. Regarding AI, assistance will be provided for AI education, consulting, and commercialization, while the number of connected platforms will be increased from 3,000 to 4,000.
If the requirements such as decision-making structure are met, designated as social corporations will receive tailored support throughout the entire cycle of startup-hiring-collaboration. The government plans to first provide startup funds to 500 teams aspiring to start a business, and if they employ vulnerable groups, they will cover monthly labor costs of 500,000 to 900,000 won for up to three years. Additionally, support for job matching will also be provided in collaboration with local governments.
In addition, 6 trillion won will be supplied for the Sunshine Loan, a financial product for low-income and low-credit individuals. The existing five types of Sunshine Loans will be consolidated into three types: general, special, and youth. Currently, each bank offers different products for the Sunshine Loan, but in the future, any bank offering at least one type of Sunshine Loan must provide all types.