South Korea’s government may launch a fresh cash relief plan as part of a second supplementary budget this year. Officials aim to include direct payments ranging from 150,000 to 500,000 won per person. Authorities plan to link the amount to household income based on health insurance premium records. Regardless of income, everyone would receive at least 150,000 won. Then, people in the bottom 90 percent income bracket would get additional support.
Officials believe larger payments to low-income earners could soften the impact of rising costs and slowing consumption. While the final numbers remain undecided, the cash relief plan appears nearly finalized. The Ministry of Economy and Finance has nearly completed a proposal estimated at 20 trillion won. Government insiders say the handout aims to stimulate domestic spending and protect household stability. Furthermore, it could help offset broader global economic pressures.
In recent weeks, political debate over the scope of the cash relief plan has intensified. Critics argue the handouts may overextend national finances without long-term benefits. Supporters say targeted aid will bring much-needed relief to struggling families. Meanwhile, economic ministries stress that decisions must balance social equity and fiscal responsibility. Budget officials still face pressure to act fast as economic anxieties rise.
Previously, the National Assembly approved a separate 13.8 trillion won relief package. That plan focused mostly on vouchers for small businesses and export-driven companies. The Trump administration’s tariff policies triggered part of that financial push. However, the new package would focus more directly on households. As of Monday, the Finance Ministry had not confirmed final program specifics.
Still, calls for government intervention continue to mount as growth weakens. Consumer confidence lags while inflation drives up essential costs. Some lawmakers say broader cash distribution will restore trust in state leadership. Others call for stricter limits to avoid ballooning the budget deficit. Either way, the cash relief plan has quickly become the center of economic policymaking.
