Gov't starts receiving applications for second round of cash handouts

A notice at a store in Seoul informs customers that the government's cash handouts are accepted as payment, Sept. 12. Yonhap

Korea will begin receiving applications Monday for the second round of state-issued cash handouts aimed at spurring consumer spending and supporting small businesses, the Ministry of the Interior and Safety said Sunday.

The handouts, valued at 100,000 won ($72) per person, will reach about 90 percent of the population, excluding the top tier of high-income earners and wealthy property owners. Applications open at 9 a.m. Monday, both online and in person.

The first round of cash handouts, rolled out in July, was part of the government’s emergency response to sluggish domestic spending and the economic challenges by global uncertainties. Under the scheme, all citizens and some foreign residents were eligible for a payment of 150,000 won, with additional benefits for low-income and single-parent households.

Recipients may choose to receive the benefit through credit and debit cards, prepaid cards or local gift certificates.

According to the Bank of Korea, consumer sentiment rebounded, and there was a measurable rise in retail sales, particularly among small businesses accepting local gift certificates. Studies also showed a significant increase in card spending immediately after the payments were distributed, indicating the handouts helped revitalize neighborhood shops and service producers.

To reduce congestion in the first week of applications, submissions will be accepted on designated weekdays according to the last digit of a recipient’s birth year. Those ending in 1 and 6 can apply Monday, 2 and 7 on Tuesday, 3 and 8 on Wednesday, 4 and 9 on Thursday and 5 and 0 on Friday.

Those opting for card payments can apply via websites, apps, call centers or local bank branches affiliated with their card issuers, with funds allocated the following day. Applications are also available through nine major card companies, as well as mobile platforms such as KakaoPay, NaverPay and Toss.

For local gift certificates in card form, residents can apply through their municipal government’s platforms. Physical vouchers or prepaid cards may be collected directly at community centers with valid identification.

The coupons are valid until Nov. 30 and can be used at small businesses with annual sales under 3 billion won. Exceptions are made for essential stores in rural areas, including Hanaro Marts and local food outlets, regardless of revenue.

Officials urged people to apply early, noting the program’s goal of reviving domestic consumption and easing financial strain among small merchants.

“We ask all citizens to apply no later than Oct. 31 and make sure to use the coupons by Nov. 30,” Interior Minister Yun Ho-jung said.