SEOUL, July 01 (AJP) - As South Korea’s National Assembly continues to deliberate the government’s proposed 30.5 trillion won ($22.5 billion) supplementary budget, lawmakers on Tuesday approved one of its most contentious items, a 13.2 trillion won plan to distribute universal consumption coupons. The decision was made as part of a broad policy review session, where ruling and opposition parties clashed over fiscal responsibility and the effectiveness of key spending proposals.
The "people's recovery coupons" are designed to stimulate domestic consumption and ease the burden of rising living costs, particularly for low-income households. Every South Korean citizen will receive at least 150,000 won, with higher amounts granted based on income level and region. The second-lowest income tier will receive 300,000 won, while basic livelihood recipients will receive 400,000 won. An additional 20,000 won will go to residents in rural areas experiencing population decline.
A second round of payments will provide 100,000 won to 90 percent of the population, excluding the top 10 percent based on health insurance contribution records. The total benefit per person could reach up to 520,000 won. The coupons will be distributed as regional gift certificates, prepaid cards, or points added to existing credit and debit cards.
The program, a central campaign pledge of President Lee Jae-myung, became the focal point of political disagreement during the National Assembly's review of the broader supplementary budget. The ruling Democratic Party argued that the coupons would provide a timely economic boost and direct relief to struggling households and small businesses. The conservative People Power Party countered that the initiative amounted to reckless fiscal populism, warning that it would offer only short-term stimulus while increasing the national debt and shifting the burden to future generations.
Democratic lawmakers pushed back by citing the comparatively low debt-to-GDP ratio of South Korea relative to other major economies, including Japan, the United States, France, and Britain.
The Interior and Safety Committee approved the coupon funding through bipartisan agreement, including a revision requiring the central government to shoulder the full 13.2 trillion won cost. The National Assembly also approved six trillion won in funding for local currency vouchers under the regional gift certificate program, which passed without changes.
While the consumption coupon plan has cleared a key hurdle, the rest of the 30.5 trillion won supplementary budget remains under review. Lawmakers continue to debate other major components, including a 1.4 trillion won debt-relief package for long-term delinquent borrowers, additional support for energy-efficient appliance purchases, and subsidies for cultural consumption such as movie tickets, art exhibitions, and sports events.
The government expects the full supplementary budget, once passed, to raise the national GDP growth rate by 0.1 percentage points in 2025.
reporter
Park Sae-jin
swatchsjp@ajunews.com
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