Seoul, April 11 – The South Korean government announced on Saturday that cash assistance for the bottom 70% of income earners will begin being distributed later this month as part of efforts to alleviate the financial strain caused by rising oil prices.
The aid will initially be provided to the most vulnerable within that income bracket, starting on April 27, and will be expanded to a broader eligible group on 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 supplementary 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 swift and effective manner.
The cash assistance program, allocated at 6.1 trillion won, is part of that package.
Recipients may collect the funds in the form of debit cards, pre-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% in its latest rate-setting meeting in Seoul.
It marked the seventh consecutive decision to hold, 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% to 2.5% to support economic growth, but it has kept it unchanged since July 2025.