🚨 Consumer Coupons: National Economic Support and Economic Activation Policy

Today Korean Social News | 2025.06.22

📌 Starting July, All Citizens Get Up to 500,000 Won Consumer Coupons…Different Amounts Based on Income

💬 The government decided to give consumer coupons to all citizens through the 2025 second supplementary budget. Each person will get between 150,000 won and 500,000 won based on their income level. The first payments will start as early as mid-July.

The top 10% income earners get 150,000 won, regular citizens get 250,000 won, near-poor families get 400,000 won, and basic livelihood recipients get 500,000 won. People living in areas with declining population get an extra 20,000 won. You can choose to receive local gift certificates, prepaid cards, or credit/debit cards, but not cash. The coupons must be used within 4 months.

Summary

• Consumer coupons are spending support money the government gives to citizens for economic activation and public welfare.
• Starting July 2025, all citizens will get 150,000-500,000 won based on their income level.
• You can choose local gift certificates, prepaid cards, or credit/debit cards, but not cash.

1️⃣ Definition

Consumer coupons are spending support money that the government gives to citizens for economic activation and public welfare. Simply put, they are 'shopping support money from the government' that people can use when buying goods or services.

This is a policy tool to help household income and encourage spending to boost the overall economy during economic downturns or difficult times.

💡 Why is this important?

• Helps reduce household economic burden and supports people's living stability.
• Boosts the overall economy by increasing spending.
• Considers social fairness by giving different amounts based on income levels.
• Helps activate local economies and increase small business sales.

2️⃣ Main Content and Payment Methods of Consumer Coupons

📕 Who Gets Them and How Much

• All citizens are eligible, but amounts differ based on income. Payment standards are:

  • Top 10% income earners: 150,000 won per person
  • Regular citizens (11th-90th percentile): 250,000 won per person
  • Near-poor families: 400,000 won per person
  • Basic livelihood recipients: 500,000 won per person
  • People in areas with declining population: Extra 20,000 won added to base amount

• Income categories use existing government support program standards. Specific standards are:

  • Basic livelihood recipients: Those receiving living, medical, housing, or education benefits
  • Near-poor families: Households with income below 50% of median income
  • Regular citizens: Income above 50% of median income but below top 10%
  • Top 10% income earners: Top 10% based on comprehensive income tax reports

📕 Payment Methods and How to Use

• You can choose from various payment methods. Main payment methods are:

  • Local gift certificates: Certificates issued by each region, can only be used in that area
  • Prepaid cards: Pre-loaded cards that can be used anywhere in the country
  • Credit/debit cards: Points or discounts added to existing cards you already use
  • Cash payment is excluded, so can only be used for spending purposes

• There are usage periods and restrictions. Main usage conditions are:

  • Usage period: Within 4 months from payment date (government is reviewing this)
  • Cannot use at: Department stores, large supermarkets, alcohol/cigarettes, some online shopping sites
  • Can use at: Traditional markets, small business stores, local shopping areas (priority targets)
  • Can split usage: Don't need to use all at once, can use in parts

📕 Application and Payment Process

• Will be paid automatically without separate application. Payment process is:

  • Existing government support recipients get automatic payment to existing accounts or cards
  • Regular citizens get notification letters sent to registered addresses
  • Choose payment method online (Government24) or at community centers
  • First payments start mid-July, aim to complete all payments by August

• Payment timing may differ by income level. Expected schedule is:

  • 1st round: Basic livelihood recipients, near-poor families (mid-July)
  • 2nd round: Regular citizens (late July to early August)
  • 3rd round: Top 10% income earners (mid-August)
  • However, exact schedule will be confirmed after supplementary budget passes

Main Issues and Limitations of Consumer Coupons

1. Budget burden: Large budget investment increases national financial burden
2. Effect duration: Temporary spending increase effect has limits in solving fundamental economic problems
3. Fairness debate: Different opinions about payment amount differences between income groups
4. Usage restrictions: Inconvenience from excluding online shopping sites and large supermarkets
5. Fraudulent receipt: Possibility of fraudulent receipt through income hiding or false reporting

3️⃣ Economic Effects and Past Examples

✅ Expected Economic Effects

• Economic boost effects through spending promotion are expected. Main effects are:

  • Direct spending increase from increased household disposable income
  • Local economic activation through increased sales for small businesses and self-employed
  • Expected virtuous cycle of spending increase → production increase → employment increase
  • Especially helpful for self-employed people struggling after COVID-19

• Social effects are also expected through different payments by income level. Social effects are:

  • Reducing income inequality by giving more support to low-income families
  • Improving living stability for basic livelihood recipients and near-poor families
  • Responding to regional decline crisis through additional support for areas with declining population
  • Improving social acceptance of the policy by giving to all citizens

✅ Past Similar Policy Examples and Evaluation

• Various support policies were implemented during COVID-19. Main examples are:

  • 2020 1st disaster support fund: 250,000-1,000,000 won per person to all citizens
  • 2021 small business loss compensation: Compensation based on sales decrease by industry
  • Local gift certificates: Sold by each local government with discount benefits
  • Culture voucher cards: Supporting spending in culture, sports, and tourism areas

• Performance and limitations of past policies were analyzed. Main evaluations are:

  • Positive effects: Confirmed immediate spending promotion and household income protection effects
  • Limitations: Lack of lasting effects due to one-time support
  • Leakage effects: Limits in achieving policy goals due to savings or large supermarket shopping
  • Regional differences: Different effects based on regional small business types and characteristics

4️⃣ Related Terms Explanation

🔎 Supplementary Budget

• Supplementary budget means additional budget created during the year.
• Supplementary budget is additional budget created when unavoidable situations occur during the year, beyond the main budget already confirmed by the National Assembly. Simply put, it's 'additional budget made for urgent matters not in the original plan'.
• Reasons for creating supplementary budgets include: first, unexpected situations like natural disasters or economic crises. Second, urgent national issues or public welfare support. Third, when extra resources are available due to increased revenue. Fourth, when budget is insufficient for pursuing national agenda.
• Supplementary budgets are created by the government and confirmed through National Assembly review and decision. The 2025 2nd supplementary budget is for giving consumer coupons for public welfare recovery, planned at about 13 trillion won.

🔎 Basic Livelihood Recipients

• Basic livelihood recipients are the lowest income group receiving living expenses from the government.
• Basic livelihood recipients are people whose income and assets are below government standards, so they receive living, medical, housing, and education benefits. Simply put, they are 'people whose lives are difficult, so they get help from the country'.
• Selection criteria for basic livelihood recipients include: first, recognized income must be below selection standards for each benefit type. Second, they must have no supporting family members or family members without supporting ability. Third, if they have work ability, they must participate in self-reliance programs.
• For 2025 standards, living benefit selection standard is 32% of median income, medical benefit is 40%, housing benefit is 48%, and education benefit is 50%. Consumer coupons give them the most at 500,000 won to help living stability.

🔎 Near-Poor Families

• Near-poor families are the income group just above basic livelihood recipients, in the welfare blind spot as low-income families.
• Near-poor families are those who are not basic livelihood recipients but face similar levels of living difficulties. It's short for 'families in the tier just above basic livelihood recipients', meaning households with income below 50% of median income.
• Characteristics of near-poor families include: first, their income is higher than basic livelihood recipients but life is still difficult. Second, they face economic difficulties due to medical, education, and other living cost burdens. Third, they are often excluded from government support, easily falling into welfare blind spots.
• Near-poor families receive some welfare services like medical benefit type 2, housing benefit, education benefit, and self-reliance benefit. This time, consumer coupons give near-poor families 400,000 won, the second highest amount after basic livelihood recipients.

5️⃣ Frequently Asked Questions (FAQ)

Q: Do I need to apply separately to receive consumer coupons?

A: In most cases, they will be paid automatically without separate application. Basic livelihood recipients and near-poor families get automatic payment to existing accounts or cards, and regular citizens get notification letters sent to their registered addresses. However, you must choose the payment method yourself (local gift certificates, prepaid cards, or credit/debit cards). You can apply online at the Government24 website or offline at community centers. If you need to change your address or account information, it's good to complete the change process at the community center in advance. Also, overseas residents or people in special situations may need separate confirmation, so please check government announcements for details.

Q: Can I do online shopping with consumer coupons?

A: Consumer coupon usage is limited. Since the government aims to activate local economies and support small businesses, you cannot use them at large supermarkets, department stores, or some online shopping sites. You can mainly use them at traditional markets, small business stores, and local shopping areas. For online use, you might be able to use them at online shopping sites or delivery apps run by small businesses, but usage will likely be restricted at large online shopping sites (Naver Shopping, Coupang, 11st, etc.). You also cannot use them to buy alcohol, cigarettes, or gift certificates. The government will announce specific usage locations, so please check official guidance before they are distributed. If you try to use them at the wrong places, payment will be blocked, so it's good to check usage availability in advance.