South Korea Launches Second Round of Consumption Boost with ₩100,000 Coupons – Urgent Breaking News
Seoul, South Korea – In a move designed to invigorate the national economy, the South Korean government has begun distributing a second round of “People’s Life Recovery Consumption Coupons,” offering ₩100,000 (approximately $75 USD) to roughly 90% of the population. This initiative, kicking off today, September 22nd, 2024, aims to stimulate spending, particularly within traditional markets and local businesses. This is a breaking news story with significant implications for both consumers and the South Korean economy, and is optimized for Google News and SEO visibility.
Who Qualifies for the ₩100,000 Boost?
Unlike the first round of coupons, which were universally distributed, this second phase targets households excluding the top 10% of income earners. The criteria for eligibility are multifaceted, considering both asset holdings and annual income. Specifically, households are excluded if they exceed ₩1.2 billion in total property value (roughly $2.6 billion in disclosure price, or $3.8 billion overall) or have financial income exceeding ₩20 million (approximately $15,000 USD) in 2024. The government also used a ‘cut-off’ standard based on total household spending, excluding long-term care insurance premiums, established in June of this year.
Here’s a breakdown of income thresholds by household size:
- Single-person household: ₩74.5 million (approximately $56,000 USD)
- Two-person household: ₩120 million (approximately $90,000 USD)
- Three-person household: ₩142 million (approximately $107,000 USD)
- Four-person household: ₩173 million (approximately $130,000 USD)
- Five-person household: ₩230 million (approximately $173,000 USD)
Dual-income households face slightly adjusted thresholds, with a payment eligibility limit of ₩600 million (approximately $450,000 USD) for four-person households.
How to Apply and Where to Spend
Applications are open until October 31st, 2024. You can apply online through card company websites and apps 24/7, or offline at resident centers (excluding weekends) from 9 am to 6 pm. To manage application volume, a staggered system based on birthdate is in effect from September 22nd to 26th. (Monday: birthdates ending in 1 & 6, Tuesday: 2 & 7, etc.).
The coupons can be used with credit cards, check cards, prepaid cards, or local “love gift certificates.” Importantly, usage is restricted to local governments, supporting regional economies. A recent expansion now includes local food stores and, from this second payment round, local cooperative stores, promoting eco-friendly agricultural products. Military personnel are also now eligible to use the coupons.
Beyond the Headlines: South Korea’s Economic Strategy
This consumption coupon program is part of a broader South Korean strategy to combat economic slowdown and bolster domestic demand. South Korea, heavily reliant on exports, is particularly vulnerable to global economic fluctuations. Stimulating internal consumption is seen as a crucial buffer against external shocks. Similar programs have been implemented in the past, often timed around major holidays or economic downturns. The focus on traditional markets and local businesses is a deliberate effort to support small and medium-sized enterprises (SMEs), the backbone of the South Korean economy.
The government is proactively notifying eligible citizens, and those who believe they have been incorrectly excluded can file an objection during the application period. Unused balances will automatically expire on November 30th, 2024, encouraging timely spending.
This latest initiative underscores South Korea’s commitment to proactive economic management and its dedication to supporting its citizens and local businesses. Stay tuned to Archyde for further updates on this developing story and in-depth analysis of its impact on the South Korean economy. For more breaking news and insightful analysis, explore the rest of Archyde.com.
