Seoul: Cash assistance for the bottom 70 per cent of income earners in South Korea will begin being rolled out later this month, the government announced Saturday, as part of efforts to ease the financial strain caused by rising oil prices.
The aid will first reach the most vulnerable within that income bracket starting April 27 and expand to the broader eligible group May 18.
Approximately 32.5 million people are eligible for the aid, with payments ranging from 100,000 won ($67.30) to 600,000 won per person, depending on income level and region.
The National Assembly passed a 26.2 trillion-won extra budget bill the previous day to address the economic fallout from the ongoing Middle East conflict.
Earlier in the day, the Cabinet reviewed and approved the bill, and Prime Minister Kim Min-seok said the government will implement the budget in a speedy and effective way.
The cash assistance programme, allocated at 6.1 trillion won, is part of that package.
Recipients may collect the funds in the form of debit cards, prepared cards or regional shopping gift cards. The money must be spent by August 31, and any unused amounts will be returned to the state, Yonhap news agency reported.
Earlier on April 10, South Korea’s central bank kept its benchmark rate unchanged, as uncertainty in the Middle East prompted a cautious stance amid risks of inflation, currency weakness and slower growth.
In a widely anticipated decision, the Monetary Policy Board of the Bank of Korea (BOK) held the key rate steady at 2.5 per cent in its latest rate-setting meeting in Seoul.
It marked the seventh consecutive on-hold decision, even as the central bank remains in an easing cycle.
The BOK began monetary easing in October 2024 and has cut the benchmark interest rate by a cumulative 100 basis points from 3.5 per cent to support economic growth, but it has kept it unchanged since July 2025.
(IANS)
