The South Korean government announced Friday that it will begin distributing a second round of consumer vouchers worth 100,000 won ($72) to 90 percent of citizens starting Sept. 22, as part of its efforts to encourage household spending and revitalize the economy.
The move comes as applications for the first round of handouts, which began on July 12, offering 150,000 won to all citizens, were set to end Friday.
Under the scheme, 90 percent of all citizens will be eligible for the vouchers. As in the first round, the handouts will be provided to each household member in the form of “consumption coupons.”
The vouchers will be distributed on a household basis, with eligibility determined by residents listed on the same household registration as of June 18.
Single-person households will be eligible to receive the vouchers if their annual employment income is 75 million won or less. For multi-earner households, the threshold will be adjusted upward to prevent such households from being disadvantaged.
For the upcoming round of handouts, wealthier households with a property tax base of 1.2 billion won or more as of last year and those with financial incomes exceeding 20 million won will not be eligible.
The voucher program applies to all long-term residents in Korea, including foreign nationals.
Non-citizens are eligible if they are listed on the same household registration with at least one Korean and are enrolled in the national health insurance system, either as a subscriber or dependent, or receive medical aid.
The vouchers are available to permanent residents on F-5 visas, residents on F-6 spousal visas and refugees on F-2-4 visas who are covered by national health insurance or medical aid.
According to the Ministry of Interior and Safety, this applies to roughly 927,000 households, or 2.48 million people with foreign nationality.
Applications to receive the vouchers will start on Sept. 22 and end on Oct. 31. Individuals born before Dec. 31, 2006, must apply individually via credit and debit card companies, the National Health Insurance Service or at local administrative offices. Vouchers for minors can be applied for and received by their legal guardians.
As in the first round, applicants can choose to receive the vouchers through credit or debit card reimbursements, local gift certificates or prepaid cards. The vouchers can be spent at most small businesses and local shops, and all the money must be spent by Nov. 30, after which any remaining balances will expire.
The government expects the second cash voucher rollout to reinforce the boost in consumer spending seen in the first round earlier this year.
“We hope the momentum for domestic demand recovery will be further expanded through the second distribution,” said Vice Minister Kim Min-jae of the Interior Ministry during Friday’s press briefing.
Meanwhile, as of Friday, 98.9 percent of eligible recipients had applied for the vouchers in the first round, and the government had distributed a total of 9.06 trillion won.
lee.jungjoo@heraldcorp.com
