Disaster relief funds to be transitioned to selective payments based on income criteria: Guidelines for living recovery support funds

Disaster Relief Funds Paid Selectively! Consumer Recovery Coupons Provided Differently Up to 500,000 Won

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In June 2025, the Lee Jae-myung government is planning to provide 'Consumer Recovery Coupons' as a special measure to revive the livelihood economy affected by COVID-19. This support will be provided to all citizens but will change to a differentiated approach based on income levels, differing from the previous universal disaster relief funds. This policy is expected to positively impact economic recovery.

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Some politicians have claimed that every citizen should receive a flat 250,000 won. However, as concerns over fiscal soundness and demands for efficiency grew, a selective support method was ultimately chosen.




Payments for All Citizens... But Amount Varies by Income

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The Consumer Recovery Coupons being implemented will be provided to a total of 51.17 million people as of May 2025. Initially, a flat payment of 150,000 won will be made, followed by additional support based on income levels.

The payment criteria will be determined based on health insurance premiums, classifying income brackets accordingly, with details finalized. The coupons are expected to contribute to the recovery of livelihoods.

Category1st Payment2nd PaymentTotal Payment
Top 10% Income150,000 won-150,000 won
General Citizens150,000 won+100,000 won250,000 won
Lower-Income and Single-Parent Families300,000 won+100,000 won400,000 won
Basic Living Recipients400,000 won+100,000 won500,000 won

Individuals in the top 10% income bracket will be excluded from additional support. The remaining groups can receive up to 500,000 won based on their income. Notably, Basic Living recipients, lower-income groups, and single-parent families have been assigned relatively higher amounts, enhancing the welfare impact on these groups.




Supplement of Existing Payment System... Promotion of Fast Payments

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The government has designed a new consumer coupon payment system by referencing the emergency disaster relief funds and the National Support Fund implemented in 2020 and 2021.

Previously, there were issues with complexity in the application process and omitted beneficiaries, but this time, a digital administration-based automatic selection payment system will be established to improve these issues.

The first payment will be carried out immediately at 150,000, 300,000, or 400,000 won, followed by a second payment of an additional 100,000 won after selection based on health insurance premium income criteria. This approach aims to secure both equity and speed in policy implementation.




Strategy to Stimulate Consumption Linked to Local Currency

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Recently, the issuance of local currency is expected to be significantly expanded along with the distribution of consumer coupons. To this end, the government plans to secure an additional 500 billion won of national funding and promote the activation of various local currencies such as the Seoul Love Gift Certificate, Yeominjeon, and Daedeok e-Round.

Considering the budget structure, if 1 trillion won of national funds is injected, it could lead to the issuance of up to 20 trillion won of local currency. This is likely to result in increased sales for small businesses and self-employed individuals. Particularly, local currencies promote consumption within the region by imposing usage restrictions, which is expected to contribute to short-term economic stimulus.

This policy is anticipated to positively impact local economic revitalization.




Changed from Universal to Selective Support, the Policy Has Changed

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The livelihood support fund proposed by President Lee Jae-myung was initially planned as a universal method distributing equally to all citizens, but due to concerns over financial burdens and effectiveness, it was changed to a selective payment method.

The newly introduced Consumer Recovery Coupons are designed to provide a certain amount to all citizens while offering relatively greater benefits to more disadvantaged groups. In this regard, the policy can be positively evaluated for its sophistication and fiscal efficiency. However, there may be criticism for deviating from the promises made.

Although the payment schedule has not yet been confirmed, the amount will vary according to individual income criteria, so it is important for each person to verify individually according to the government's official announcement.




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Frequently Asked Questions (FAQ)

Q. Who will receive the Consumer Recovery Coupons in 2025?
As of May 2025, a total of 51.17 million people will receive differentiated payments based on income.

The Consumer Recovery Coupons are a measure that the Lee Jae-myung government will implement starting in June 2025 to recover the livelihood economy affected by COVID-19. The coupons will be distributed to all citizens but will be paid differently based on income levels. An initial flat payment of 150,000 won will be made, and additional support will follow according to income levels. The top 10% income bracket will be excluded from additional support.

Q. How do the Consumer Recovery Coupons differ from previous disaster relief funds?
Unlike the previous universal payments, they will be paid selectively based on income.

The disaster relief funds from 2020 and 2021 were distributed universally, but the Consumer Recovery Coupons are differentiated based on income levels to enhance fiscal soundness and effectiveness. Payment amounts will be determined by income brackets based on health insurance premiums, providing more benefits to welfare-targeted groups such as Basic Living recipients. Moreover, the new system improves speed and accuracy through a digital automatic selection payment system.

Q. Will those in the top 10% income bracket not receive the Consumer Recovery Coupons?
Yes, those in the top 10% income bracket will be excluded from additional support.

The Consumer Recovery Coupons policy aims to focus support on those facing economic difficulties. Therefore, individuals in the top 10% income bracket will be excluded from additional support and will not receive additional coupons beyond the basic payment. This measure maximizes fiscal efficiency and the effectiveness of selective support.

Q. How will the Consumer Recovery Coupons be distributed?
Initially, a flat payment of 150,000 won will be made, with additional differentiated payments based on income following.

The government plans to distribute Consumer Recovery Coupons to approximately 51.17 million people as of May 2025. Initially, everyone will receive 150,000 won, and thereafter, payments of up to 500,000 won will be made differently based on health insurance premium income criteria. The application process will be simplified through an automatic selection system enabled by digital administration, ensuring promptness and fairness in the distribution.

Q. What is the strategy for promoting local currency linked to the Consumer Recovery Coupons?
A national funding of 500 billion won will support the expansion of local currency issuance and stimulate consumption.

The government actively promotes local currency activation in conjunction with the Consumer Recovery Coupons. It will support the expanded issuance of various local currencies such as the Seoul Love Gift Certificate, Yeominjeon, and Daedeok e-Round with 500 billion won of national funding, potentially expanding to 20 trillion won. The local currencies are expected to promote consumption within the region, contributing to increased sales for small businesses and self-employed individuals, as well as providing short-term economic stimulus.

Q. Why was the payment method for the Consumer Recovery Coupons changed?
The shift was made from universal payments to selective payments due to concerns over fiscal burdens and efficiency.

Initially, a universal method providing 250,000 won to all citizens was considered. However, due to concerns over fiscal soundness and the efficiency of payment distribution, the policy was shifted to a selective payment method based on income levels. This change enables more concentrated support for disadvantaged groups and also enhances the efficiency of government budget execution. However, some criticism exists due to the deviation from previous promises.

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