Government’s Second Supplementary Budget: Differentiated Payment of Consumer Coupons for Recovery of Livelihoods Confirmed

The government has confirmed that the core projects of the second supplementary budget are the 'Consumer Coupons for Recovery of Livelihoods' and support for 'Local Love Gift Certificates'.

According to the relevant ministries on the 22nd, the current consumer coupons will be distributed based on individual citizens' income and assets, and will be paid in two phases: first and second.

In the first phase, a uniform payment of 150,000 won will be distributed to all citizens. Notably, residents in rural areas experiencing population decline (84 cities and counties, 4.11 million people) will receive an additional 20,000 won, while recipients of basic living support (2.71 million people) and the near-poor (380,000 people) will receive additional amounts of 150,000 won and 250,000 won, respectively, totaling 400,000 won and 300,000 won.

The second phase will target only the bottom 90% of income earners, with an additional payment of 100,000 won per person. As a result, basic living recipients may receive up to 520,000 won, the near-poor 400,000 won, and ordinary citizens 250,000 won in consumer coupons. Citizens in the top 10% of income earners will only receive the first phase payment of 150,000 won.

Basic living recipients may receive up to 520,000 won, the near-poor 400,000 won, and ordinary citizens 250,000 won.

Criteria for the Health Insurance Contribution for the Top 10% and Newborn Payment Plan

The government plans to use health insurance premiums as the criterion for income classification.

According to last year’s standards, the health insurance premium for the top 10% of income earners was over 273,380 won for workplace subscribers.

Reverse calculating this indicates that employees with a pre-tax annual income of over 77,110,000 won are likely to be excluded from the second consumer coupon payment.

It is important to note that even if individuals fall within the bottom 90% of income, those who own properties with a public price of over 1.5 billion won will also be excluded from the second coupon payment. This appears to be a measure to avoid controversy by not basing the criteria solely on income without considering assets.

Newborns will also be included in the consumer coupon recipients.

However, the birth date criterion has yet to be decided, but those whose birth registration is completed before the payment initiation date will likely be included as recipients.

The government plans to submit the supplementary budget proposal to the National Assembly by the end of this month, and considering the legislative review process, it is expected that the general assembly may consider it as early as next month. Accordingly, the first coupon payment could begin in mid-next month; however, the second payment may take longer due to the selection process for the top 10%.

Methods and Restrictions for Using Consumer Coupons

The current consumer coupons can be received in one of the following forms: local love gift certificates (local currency), prepaid cards, or credit/debit card point reloads.

For credit/debit cards, points will be reloaded to the cardholder’s own name within 2-3 days after requesting through the card issuer, while prepaid cards will be issued physically, and local currency will be available in mobile app or physical form.

The government has raised the discount rate for local love gift certificates from 2-10% to 7-15% in this supplementary budget proposal. However, even if consumer coupons are received in the form of local love gift certificates, the discount rate will not be applied when purchasing products with those certificates.

A representative from the Ministry of the Interior and Safety explained, "When consumer coupons are received as local love gift certificates, they will be provided in the form of points," and "Even if those points are used for payment, it is expected that the discount rate will not apply."

However, the government will provide a 10% refund (up to 300,000 won) when purchasing high-efficiency appliances.

Eligible products include refrigerators, air conditioners, washing machines, electric rice cookers, TVs, and 11 other items subject to energy efficiency rating systems.

For instance, if an ordinary citizen purchases an electric rice cooker with a 250,000 won consumer coupon, they will receive a refund of 25,000 won, resulting in a total effect of 275,000 won.

Consumer coupons are expected to be usable at local markets, traditional markets, restaurants, academies, hospitals, pharmacies, and other industries closely related to local economic life.

In contrast, usage will be restricted at establishments such as entertainment venues, horse racing tracks, casinos, and large department stores, supermarkets, and duty-free shops affiliated with conglomerates. Additionally, a usage expiration period will be set for consumer coupons, which is likely to be around 4 months, considering past disaster relief fund cases.