Cash assistance will soon be distributed to the bottom 70% of income earners to alleviate financial pressures stemming from increasing oil prices. The aid rollout will commence on April 27, initially benefiting the most vulnerable individuals within this income group, and is set to expand to a wider eligible population by May 18. Approximately 32.5 million people qualify for this assistance, with payments ranging from 100,000 to 600,000 won per person based on income and region.
The National Assembly recently approved a 26.2 trillion-won supplementary budget to address the economic impact of the ongoing conflict in the Middle East. A portion of this budget, totaling 6.1 trillion won, has been allocated to the cash assistance program. Recipients will receive the funds through debit cards, prepared cards, or regional shopping gift cards, with a spending deadline set for August 31. Any unused funds will be returned to the government.
Despite a temporary ceasefire between the United States and Iran, the passage of ships through the Strait of Hormuz remains severely restricted, as highlighted by National Security Adviser Wi Sung-lac. South Korea is actively exploring alternative shipping routes to mitigate disruptions in the supply chain, particularly for crude oil and naphtha. Wi emphasized the need for continued efforts to secure alternative sources amid ongoing concerns over Iran’s control of the vital waterway.
