South Korea announces cash aid for citizens to stimulate domestic economy

By Saadet Gokce

ISTANBUL (AA) - South Korea plans to distribute cash incentives to all its citizens to boost domestic consumption by July 21.

All South Korean citizens, as well as permanent residents, marriage immigrants, and recognized refugees who were officially residing in the country up to June 18, are eligible for the one-time payment of 150,000 won ($110), regardless of their economic status, according to the Yonhap News.

On Friday, Seoul's National Assembly passed a 31.8 trillion-won ($23.3 billion) supplementary budget, with the incentives plan being a significant part of it.

Additional targeted aid will also be provided based on income levels to those who need it.

While people in near-poverty households and single-parent families will receive 300,000 won ($242), the basic living allowance recipients will be provided 400,000 won ($293).

Those who reside outside the greater Seoul area, as well as individuals who live in the 84 designated rural and fishing communities, which are under threat of population decline, will receive additional payments of no more than 400,000 won.

The process of application and distribution will continue over an eight-week period until Sept. 12.

A second round of payments is also planned between Sept. 22 and Oct. 31 for the bottom 90% of income earners.