Up to 600,000 Won Promised... How Much High Oil Price Compensation Will I Receive? (Comprehensive)

In order to ease the burden of high oil prices and inflation caused by the Middle East war, the government will provide high oil price compensation payments to the public, ranging from a minimum of 100,000 won to a maximum of 600,000 won per person.

Yonhap News

On April 11, the government announced the “High Oil Price Compensation Payment Plan” at the Government Complex Seoul in Gwanghwamun, Seoul, in cooperation with related agencies. The recipients are approximately 32.56 million people who fall within the bottom 70% income bracket as of March 30. The total budget amounts to 6.1 trillion won, consisting of 4.8 trillion won in national funds and 1.3 trillion won in local government funds.

Vulnerable groups, such as Basic Livelihood Security recipients, those just above the poverty line, and single-parent families, will receive their payments first starting April 27. Basic Livelihood Security recipients will receive 550,000 won, while those just above the poverty line and single-parent families will receive 450,000 won. Residents in non-metropolitan areas or in regions with declining populations will receive an additional 50,000 won.

Other individuals in the bottom 70% income bracket can apply starting May 18. The payment amounts are as follows: 100,000 won for those in the Seoul metropolitan area, 150,000 won for those in non-metropolitan areas, 200,000 won for residents in designated population decline support areas, and 250,000 won for residents in special support regions.

The application and payment process is divided into two phases. Vulnerable groups can apply from April 27 to May 8. The remaining eligible individuals can apply online or offline from May 18 to July 3. Adults must apply individually, while the head of household must apply on behalf of minors.

During the first week of applications, both online and offline, a day-of-the-week system will be used based on the last digit of the applicant's year of birth. Due to Labor Day on May 1, which is designated as a holiday during the first payment phase, those whose birth year ends in 4 or 9, as well as 5 or 0, will be able to apply on April 30.

The application channel varies depending on the disbursement method chosen for the high oil price compensation. To receive it via credit or debit card, applicants can use the card company’s website or app, call center/ARS, or visit a partner bank branch. The payment will be credited to the applicant's card on the following day, and notification of the credit will be sent via text message or similar means.

If applicants wish to receive the payment as a local currency gift certificate, they can apply online for the mobile or card-type certificates via the local government’s gift certificate app or website. For paper gift certificates or prepaid cards, applications and collection can be done at the local administrative welfare center.

The compensation payment can only be used within the jurisdiction of the applicant’s registered local government. Residents of metropolitan cities can use it throughout the city, while residents of provincial areas can use it within the jurisdiction of their city or county of residence.

Usage is limited to small businesses with annual sales of less than 3 billion won, with some industries excluded. It cannot be used for online shopping malls, delivery apps, entertainment or gambling-related businesses, or cash-convertible businesses. However, if payments on delivery apps are made through the merchant’s own card terminal via face-to-face transactions, usage will be exceptionally permitted.

Appeals regarding the high oil price compensation payments will be accepted from May 18 to July 17. The payments can be used until August 31, after which any remaining balance will expire.

The government will first select the bottom 70% income group based on health insurance premium data. Additional criteria will be established to exclude high-asset individuals, and the final selection criteria for recipients will be announced in May.

Minister of the Interior and Safety, Ho-joong Yoon, stated, “In this emergency economic situation, fiscal measures must support citizens’ livelihoods. We will ensure that the high oil price compensation payment serves as a lifeline for ordinary people, protecting them from the economic shock caused by the Middle East war.”

This content was produced with the assistance of AI translation services.