South Korea has approved a new cash assistance programme for 70% of citizens to ease financial pressure from rising fuel prices

The government of South Korea has announced a second round of cash assistance for the bottom 70 per cent of income earners as part of efforts to cushion rising financial pressures linked to global fuel price increases and ongoing tensions in the Middle East.

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Officials confirmed on Monday that the National Assembly has approved a 26.2 trillion won (17.8 billion dollars) supplementary budget to address the economic impact of the crisis, including the expanded South Korea cash assistance programme.

The initiative is designed to support households facing increased living costs, particularly those affected by inflation in fuel and energy markets.

Under the first phase introduced in April, the government provided up to 600,000 won to recipients of basic livelihood security and other vulnerable groups.

The second phase of the programme will begin accepting applications next Monday, according to government officials.

Eligible residents in the wider Seoul metropolitan area will receive 100,000 won, while those living in depopulating regions may receive up to 250,000 won depending on their location and income profile.

Eligibility will be determined based on national health insurance contribution levels recorded in March.

For single-person households, individuals who paid 130,000 won or less in insurance contributions will qualify, while annual income thresholds are set at 43.4 million won or less for eligibility consideration.

However, about 930,000 households will be excluded from the South Korea cash assistance scheme due to high asset holdings or financial income levels exceeding government limits.

Authorities stated that households with assets above 1.2 billion won or financial income above 20 million won will not be eligible for support.

The application period will remain open until July 3, and beneficiaries will receive funds via credit cards, debit cards, prepaid cards or local currency vouchers.

The government noted that the funds must be used by August 31 and will be restricted to small businesses with annual sales below 3 billion won.

Interior Minister Yun Ho-jung said the programme is aimed at easing the burden of rising fuel costs and stimulating local consumption.

“The high-oil price support fund is expected to reduce the people’s burdens stemming from the prolonged war in the Middle East and revive dampened consumption,” he said.

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The initiative forms part of broader economic stabilisation measures as global uncertainty continues to impact household spending and energy costs.