President Lee Jae Myung’s cash voucher plan took a major step forward on Thursday. The Cabinet approved 15.2 trillion won ($11 billion) to distribute cash-equivalent vouchers nationwide. Lee announced the move after returning from a three-day trip to Canada. He stressed the urgent need to revive consumer spending amid rising recession fears. The plan targets sluggish demand that threatens to cripple small businesses.
“If people are struggling, the state must act,” Lee said during the meeting. He called for public funds to be used to benefit everyone fairly. Every South Korean will receive at least 150,000 won through Lee Jae Myung’s cash voucher plan. Those in extreme poverty will get 400,000 won, while the near-poor will receive 300,000 won. Additionally, 90 percent of income earners will get an extra 100,000 won.
Second Vice Finance Minister Lim Ki-keun expects the plan to generate 13 trillion won in spending. Still, controversy surrounds Lee Jae Myung’s cash voucher plan. Critics argue it rewards voters and encourages populism. Opposition spokesman Ho Jun-seok voiced concerns about the policy. He questioned whether broad payouts would truly revive the economy.
This is not the first time Korea has used cash vouchers. In 2020, former President Moon Jae-in offered household subsidies during the COVID-19 pandemic. Back then, only the bottom 70 percent of income earners qualified. Households received between 400,000 won and 1 million won. This time, Lee’s plan aims for universal coverage.
Questions remain about coverage for foreigners in Korea. A Finance Ministry official said this remains undecided. A task force will finalize eligibility in coming weeks. Lee Jae Myung’s cash voucher plan may change as details emerge. Public debate will likely intensify before final decisions are made.
Lee’s history of bold social welfare ideas fuels the debate. As Seongnam mayor, he pushed for free school uniforms and basic income. Some initiatives faced legal hurdles from Gyeonggi Province. Later, as Gyeonggi governor, he revived them successfully. His current plan follows a similar philosophy.
The National Assembly will vote on the proposal Monday. Lee will meet opposition leaders beforehand to seek support. The budget requires approval from at least half of lawmakers present. Lee’s ruling Democratic Party holds 167 of 298 seats. If passed, it will add to this year’s 30.5 trillion won supplementary budget.
Earlier this year, Korea passed a 13.8 trillion won wildfire relief package. Lawmakers also addressed threats from US tariffs. Now, Lee Jae Myung’s cash voucher plan takes center stage. Its success may hinge on the Assembly’s response and public support. Economic uncertainty continues to drive urgent government action.
