Seoul: The first-round applications for the government's cash handouts to all South Koreans began nationwide Monday and will continue until Sept. 12, the interior ministry said. Under the plan intended to help stimulate domestic consumption, all South Korean citizens residing in the country as of June 18, the day before the plan was announced, will receive a one-time payment of 150,000 won (US$108).
According to Yonhap News Agency, foreigners are in principle excluded from the program, but those who are registered on the resident registration cards, including South Koreans and those subscribing to state health insurance, are eligible. Permanent residents, marriage immigrants, and recognized refugees who are covered by state health insurance are also eligible for the handouts.
The ministry stated that the application and distribution of the handouts, called "consumption coupons," will be carried out over an eight-week period till 6 p.m. Sept. 12. The coupons are issued the day after application, with an expiration date of Nov. 30. They cannot be used at large supermarkets, department stores, duty-free shops, online shopping malls, and gambling businesses.
Additional targeted assistance will be provided based on income level. Individuals in near-poverty households and single-parent families will receive 300,000 won each, while recipients of the basic living allowance will get 400,000 won per person. To promote balanced regional development, residents outside the greater Seoul area, including Gyeonggi Province and Incheon, will receive an extra 30,000 won. Those living in 84 designated rural and fishing communities facing population decline nationwide will be granted an additional 50,000 won.
People can choose to receive the payment through one of several methods: credit or debit cards, prepaid cards, or local government-issued gift certificates. To prevent the overloading of web servers and congestion at community centers, online and offline applications can only be accepted on designated days for each individual this week, depending on the last digit of one's birth year. Applications for digits 1 and 6 can be made on Monday, digits 2 and 7 on Tuesday, digits 3 and 8 on Wednesday, digits 4 and 9 on Thursday, and digits 5 and 0 on Friday.
A second round of payments, scheduled between Sept. 22 and Oct. 31, will provide an additional 100,000 won to the bottom 90 percent of income earners.