The government will provide a "high oil price damage support payment" of 100,000–600,000 won per person to the bottom 70% by income. It said it aims to support those hurt as the burden on low- and middle-income households has grown with oil prices rising amid the Middle East war.
In the supplementary budget bill released on the 30th, the "three-part package to ease the burden of high oil prices" was arranged at 10.1 trillion won. Excluding local allocation grants (9.7 trillion won) that are automatically distributed to local governments from the total supplementary budget of 26.2 trillion won, about two-thirds of the funds were allocated here.
◇ The less income, the more support; more support outside the capital region
First, people in the bottom 70% by income can receive 100,000–600,000 won per person. As with the issuance of the second round of consumption coupons last year, eligibility will be determined based on household health insurance premiums. Likewise, it can be provided in the form of credit cards, debit cards, prepaid cards, or local currency.
The core principle is to provide more support to those with lower incomes and those living outside the capital region. First, 100,000 won will be provided by default to the bottom 70% by income living in the capital region. For near-poor and single-parent households living in the capital region, 450,000 won will be provided, and for basic livelihood recipients, 550,000 won.
If the bottom 70% by income lives outside the capital region, 150,000 won will be provided; if they live in a preferred depopulation area, 200,000 won; and if they live in a special depopulation area, 250,000 won.
Special areas are 40 cities and counties among depopulation areas that received low scores in terms of underdevelopment and balanced development; Yanggu County, Gangwon, is a representative example. Preferred areas are 49 of the 89 depopulation areas excluding the special areas. Ganghwa and Ongjin counties in Incheon and Gapyeong and Yeoncheon counties in Gyeonggi are in the capital region but are classified as preferred depopulation areas, so they receive 200,000 won instead of 150,000 won.
For near-poor and single-parent households outside the capital region, 500,000 won will be provided regardless of depopulation area classification, and for basic livelihood recipients, 600,000 won.
A government official said, "We will first pay the basic livelihood recipients and near-poor households in the first round, and for the rest who require calculation of income brackets, we will confirm the recipients through health insurance premiums and other data and pay in the second round," adding, "Last year, the first and second consumption coupons were given 17 days and 80 days after passage by the National Assembly, respectively, and we will make payments as quickly as possible in line with last year's timeline."
The national subsidy rate for the high oil price damage support payment is 70% for Seoul and 80% for other local governments.
◇ More money back for frequent public transit users
The refund rate for the "K-Pass" will also be expanded for six months on a temporary basis. K-Pass is a transit card that refunds a certain percentage of expenditure when using public transportation 15 times or more per month. The refund rates will be raised to ▲ low-income 53→83% ▲ families with three children 50→75% ▲ youth, families with two children, and seniors 30→45% ▲ general 20→30%.
For energy vouchers, an additional 50,000 won will be provided to 200,000 households among climate-vulnerable groups of basic livelihood recipients (older adults, people with disabilities, infants, pregnant women, single parents, and families with multiple children) who use kerosene or LPG. In addition, for farmers and fishers, oil price-linked subsidies and fertilizer and feed purchase expense support will be provided, and for small shipping companies operating cargo vessels, 50–70% of the price of marine diesel exceeding 1,700 won per liter (ℓ) will be covered.
In addition, funds have been arranged for ▲ compensating refineries' losses due to the implementation of the petroleum price cap (six months) ▲ responding to a naphtha supply crisis (three months) ▲ and a contingency reserve for purposes such as responding to unpredictable fuel costs and foreign currency budget shortfalls.