'Criteria makes no sense': Frustration grows over fuel aid cutoff

Residents apply for cash assistance aimed at easing financial strain caused by the Middle East crisis at a community center in Yeongdeungpo District, Seoul, Tuesday. Yonhap

Lee, a school teacher in her 30s living in Seoul's Yangcheon District, said she was surprised to learn she did not qualify for the government's fuel price relief payment for the bottom 70 percent income bracket.

After checking her eligibility through a banking app, Wednesday, she found that she did not meet the criteria for the payout.

"Teachers' salaries are not that high," Lee said. "I don’t understand how I ended up being classified in the top 30 percent income bracket. I think the assessment may have reflected my household's combined assets, but I have personal loans under my name. Honestly, I feel like I'm the one who should be receiving the support."

The government on Monday began distributing a second round of fuel price relief payments to around 36 million people, or roughly 70 percent of the population in lower income brackets, as households grapple with high fuel costs amid the prolonged conflict in the Middle East.

Eligible recipients receive between 100,000 won ($66) and 250,000 won depending on their region of residence, with larger payments going to residents in nonmetropolitan and population-decline areas.

Households with taxable assets exceeding 1.2 billion won or annual financial income above 20 million won in 2024 are excluded from the program.

According to the Ministry of the Interior and Safety, around 13.19 million people had applied for the first and second rounds of the fuel relief as of Tuesday, accounting for 36.7 percent of all eligible recipients.

The cash handout, however, has triggered backlash among people excluded from the program, who say the eligibility criteria fail to reflect their actual financial situations.

Eligibility is determined based on national health insurance premiums, which the government uses as a proxy for income.

Single-earner individuals paying 130,000 won or less in monthly health insurance premiums qualify for the payments, a threshold that corresponds to an annual income of about 44 million won.

A gas station in Seoul shows gasoline priced at 2,019 won per liter, Tuesday. Yonhap

Complaints have also grown among self-employed individuals enrolled in the regional health insurance program, as subscribers paying more than 80,000 won per month in premiums per person are excluded from the payments under the current criteria.

"Small business owners are the ones being hit hardest by inflation, but the health insurance criteria makes no sense. I'm barely making 2 million won a month after expenses and loan payments, but I'm not eligible for the support," one user wrote in a Naver online community for self-employed individuals.

Critics also pointed out that the program fails to adequately support people most directly affected by rising fuel costs.

Many office workers living outside the Seoul metropolitan area rely heavily on their own vehicles due to limited public transportation, making them vulnerable to higher fuel prices.

A 35-year-old office worker surnamed Kang living in Wonju, Gangwon Province, said he was not eligible for the payment despite commuting by car every day.

"I thought the whole point of the program was to help people cope with rising fuel costs," he said. "I expected to qualify since the program was supposed to provide additional support for those living in nonmetropolitan areas. I don't understand the criteria."