Recovery of people's livelihoods consumption coupons - Announcement by the Ministry of the Interior and Safety on payment plans, application methods, and precautions

consumption coupon, economic crisis, livelihood recovery

Introduction: Background of the Introduction of Consumer Coupon Policy

After 2024, South Korea entered a phase of prolonged domestic stagnation amidst a complex economic crisis characterized by sluggish growth, high prices, and rising interest rates. In particular, small business owners and self-employed individuals faced a situation where even maintaining a living became difficult due to a sharp decrease in sales and a contraction in consumer spending, leading to an overall sense of economic decline among the populace. To address this situation, the government has prepared measures that directly boost consumer purchasing power, resulting in the 'Living Recovery Consumer Coupon' policy. This policy was concretized through the supplementary budget for 2025 and was officially finalized on July 4 after passing through the National Assembly. The policy is designed as a hybrid form that combines universal support for all citizens with tailored assistance based on income conditions, going beyond simple consumption incentives. The government expects that this consumer coupon will serve as a catalyst for economic revitalization while simultaneously restoring the most vulnerable links in people's livelihoods.

Consumption coupon payment, tiered support, regional imbalance

Main Point 1: Systematic and Fair Payment Plan in Stages

The first distribution of the recovery consumption coupons for people's livelihoods will begin on July 21, 2025, and will be implemented broadly for all citizens. The reference date is June 18, 2024, and all citizens residing in the country as of this date will be eligible for the first distribution. The government emphasizes the speed and tangible impact of the distribution, designed to stimulate domestic consumption during the summer vacation season and early in the second half of the year. The basic amount per person is 150,000 won, with additional support for vulnerable groups. Specifically, households in the lower income bracket and single-parent families will receive 300,000 won, while those receiving basic living benefits will receive 400,000 won. Additionally, to alleviate regional imbalances, citizens residing in non-metropolitan areas, excluding the metropolitan area (Seoul, Gyeonggi, Incheon), will receive an additional 30,000 won, and those residing in 84 rural areas with population decline will receive an additional 50,000 won. Through this, the maximum amount one can receive in the first distribution will reach 450,000 won per person. The government aims to clarify the purpose of the policy beyond simple cash support through this sophisticated differentiated support system by income level and region, designing it as a "policy closely linked to people's lives" that reflects the economic conditions of each individual citizen.

second payment, top 10% income, asset ownership

"Main Discussion 2: Secondary Payment Plan

The second payment is scheduled to start on September 22, 2025, and will be conducted for the citizens excluding the top 10% of income earners. While it will be based on health insurance premium payment records, the plan is to additionally reflect factors such as high asset ownership in order to select the recipients. This measure reflects the reality that the burden of health insurance premiums varies depending on asset ownership structure, and it is intended to address equity issues between workplace subscribers and local subscribers. The amount for the second payment is set at 100,000 won per person, and, similar to the first payment, the same platform and method will be applied to ensure quick and convenient receipt. However, since the process involves income screening, establishing transparency in the selection criteria and reasonable standards has emerged as a key challenge.

Main Point 3: Application Method and Precautions

The application for the livelihood recovery consumption coupon is based on individual applications, and it is applicable to those born before December 31, 2006. In the case of a minor household head, exceptions are made to allow them to apply directly to minimize blind spots. Applications are available both online and offline, with the utmost consideration for public convenience and accessibility. For online applications, consumers can apply through the website or app of the credit or debit card company they usually use, and the payment will be made automatically the day after the application is submitted. Citizens wishing to use the local love gift certificate can apply through the dedicated app of the respective local government, and it can be charged in mobile or card form. Offline applications can be made at community centers and bank branches, and applicants wishing for paper gift certificates or prepaid cards can receive them directly from the community center. Online applications are accepted every day, including weekends, while offline applications operate on a weekday system to prevent initial congestion. The residential address of the applicant based on the resident registration serves as the basis for determining the applicable area for application and use. The usage area is limited to the local special city, metropolitan city, or within the county in which the address is located, promoting organic local economic recovery by encouraging consumption within the region through consumption coupons. The coupons can be used until November 30, 2025, and any unused balance will be reclaimed. This measure is designed to prevent financial waste and to encourage consumption in line with the original policy objectives. In addition, the order of consumption is set to use the livelihood coupon first after the card is charged, enhancing usability.

Main Point 4: Objection and Supplementation System and Anti-Fraud Efforts

The government is operating a prior notification and appeals system in parallel to respond to various variables that may arise during the policy implementation process. As of July 14, citizens can apply for the prior notification service through a total of 17 apps including KakaoTalk, Naver app, and Toss, allowing them to receive advance guidance on their eligibility and application methods. Notifications will be delivered sequentially starting from July 19, and it is expected to enhance the convenience of the application process. An appeals system will also be in place. For instance, if someone is newly registered as a basic livelihood recipient after the reference date, they might have been omitted from existing beneficiaries. In such cases, online applications can be made through the Citizen's Complaint Center, and in-person submissions can also be made at local community centers. Local governments will promptly review the submitted information and notify individuals of the results. Meanwhile, the government is thoroughly preparing in advance for concerns related to fraudulent distribution problems such as 'gwang' (funds acquired and misused) focusing on local love gift certificates. Regular inspections and enforcement actions on gift certificate merchant stores are being strengthened, and sanctions against users are also being implemented. In particular, to prevent side effects that occurred during the past disaster relief funds period, such as purchasing luxury goods, large department stores, foreign stores, and franchise-owned stores are designated as restricted usage categories. Warnings about fraudulent messages such as smishing are also being issued. The government has made it clear that it will not send any messages or texts containing URLs related to livelihood coupons under any circumstances and has urged the public to remain vigilant. There is also a dedicated call center (☎110) for civil complaints and a civil complaint response system for each local government.

Conclusion: The Effectiveness and Challenges of Policies Closely Related to Daily Life

The consumer coupon policy for livelihood recovery is an example of the South Korean government's proposal for a practical and direct response to the contraction of domestic demand. It is noteworthy that it appropriately combines universal support for all citizens with income-based selective support. In addition to the short-term goal of stimulating consumption, it aims for long-term policy effects such as alleviating income inequality, resolving regional disparities, and enhancing the perceived effectiveness of policies. The universality and speed of the first payment can stimulate immediate consumer activities, while the second payment structure offers more substantial assistance to those in relatively difficult income situations. Additionally, by diversifying receipt methods according to personal choices and designing the policy to encourage local consumption, it seeks to align the effectiveness of the policy with its goals. However, challenges remain, such as establishing income selection criteria for the second payment, confusion over the recovery of unused amounts within the usage period, and the potential for illegal circulation of local love gift certificates. Consequently, the government requires more refined administrative execution, prior guidance, and user-centered system design. This policy, directly connected to the daily lives of individuals, serves not merely as an economic stimulus but also as a symbolic measure in which the government seeks to act as a partner in overcoming the economic crisis together with the citizens. It is hoped that the consumer coupons for livelihood recovery will genuinely gift the name 'recovery' to the lives of the people.

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