"Up to 500,000 Won per Person Before Chuseok"... Local Governments Roll Out Livelihood Support Payments

Local Governments Disburse Livelihood Support Funds Ahead of Chuseok
Payments via Local Gift Certificates to Spur Consumption
Some Initiatives Blocked by Local Councils... Regional Fairness Issues Emerge

With the Chuseok holiday approaching, local governments across the country are introducing a series of livelihood support programs, with some offering up to 500,000 won per resident, aiming to revive their regional economies. The main goal is to alleviate the increasing living expenses of residents, burdened by high oil prices and a prolonged economic downturn, while boosting local consumption during the festive season.

Consumer coupon card for livelihood recovery. Not directly related to the text. Photo by Yonhap News.

However, unlike the central government’s all-inclusive, nationwide cash handouts, these support payments are pursued independently by each local government using their own budget. As a result, the scale, timing, and eligibility for these payments differ from region to region. Even within the same metropolitan area, whether the aid is provided depends on each district’s decision. Some plans have been delayed or canceled depending on local governments’ finances or approval from local councils, leading to growing discussions about fairness among residents.

100,000 to 500,000 won per person... Provided via local gift certificates and prepaid cards

According to local governments as of August 20, the regions that have finalized the largest amounts of support per person are Uiryeong County in South Gyeongsang Province and Hampyeong County in South Jeolla Province. Both counties will provide 500,000 won per resident.

Hampyeong County plans to offer this to all 29,000 residents starting September 7, with the payment method set as prepaid cards. Uiryeong County has also committed to providing 500,000 won in livelihood stabilization support to all residents and is proceeding with related procedures.

Tongyeong City in South Gyeongsang Province will open applications for its own “Tongyeong-type Livelihood Recovery Payment” on August 31, offering 350,000 won per person. Initially, Tongyeong planned to provide 330,000 won per person in June, but the plan was scrapped amid controversy ahead of the local elections. After the launch of the 9th popularly-elected administration, the city renewed its efforts, and following city council discussions, increased the amount to 350,000 won.

In South Jeolla Province, numerous local governments will disburse support funds before Chuseok as well. Of the 27 cities, counties, and districts in Gwangju and South Jeolla, eight are considering providing support payments, and five of them—including Hampyeong County—intend to do so before the holiday.

Goheung County and Jangheung County will provide 300,000 won per person in local gift certificates. Naju City will offer local gift certificates worth 200,000 won, while Yeongam County is set to provide 100,000 won per person.

Buan County office building exterior. Buan County

In North Jeolla Province, Buan County, Gochang County, and Wanju County will each distribute 300,000 won per resident. Buan County will provide the payment as a prepaid card usable only within the county. Gochang County will give 300,000 won per person in "County Resident Vitality Support" before Chuseok, while Wanju County plans to distribute 300,000 won each to about 105,000 residents ahead of the holiday.

In North Gyeongsang Province, Uljin County will give all its residents 300,000 won each on the “Uljin Love Card” before Chuseok. The necessary funding of 14.2 billion won will be secured through additional transport grants and increases in local income tax.

Mungyeong City will issue a 250,000 won "High Oil Price Crisis Response Support" prepaid card per citizen. It is usable at small businesses in the region with annual sales under 3 billion won until the end of this year, and gas stations can accept it regardless of sales size.

In Yeongdong County, North Chungcheong Province, the county is distributing the second round of livelihood stabilization support, with 300,000 won in local gift certificates per person. Applications opened on August 17, and payments will be made sequentially starting September 1. Earlier, in January this year, Yeongdong County also issued 500,000 won per resident in a first round of these payments.

Meanwhile, Gyeonggi Province, Incheon City, Busan City, and Jeju Province currently have no plans to distribute separate livelihood support funds around Chuseok.

Boosting local consumption, relieving living costs

The primary reason local governments are providing these support funds is to alleviate household financial burdens and encourage consumption within their regions. In particular, many payments are being issued as local gift certificates or prepaid cards rather than in cash. This ensures the money is spent locally, preventing consumer spending from flowing to large online platforms or outside regions, and aims to boost traditional markets and small businesses.

Market data photo. Not directly related to the main text. Yonhap News Agency

With high oil prices and economic stagnation dragging on, the sense of an economic recession has deepened; officials believe that support payments can drive a short-term increase in local consumption. However, as these are one-off programs, some evaluate them as temporary stimulus measures, rather than solutions for structural recovery of local economies.

Payments halted by local councils in Gangneung, Dangjin... Regional fairness issues emerge

Not all regions are proceeding smoothly with disbursing these payments. There are cases where plans have collapsed due to lack of approval from local councils. Gangneung City in Gangwon Province attempted to provide 100,000 won per resident through “Gangneung Pay,” but the city council voted down the related ordinance. On July 31, both the original and revised bills were rejected due to opposition from People Power Party council members.

People Power Party council members in Gangneung stated, "This ordinance would allow the city to spend enormous sums of citizens’ tax money without clear standards and procedures—an arbitrary form of administration," and added, "We believe voting down an incomplete ordinance is the responsible position towards citizens."

A similar situation arose in Dangjin City, South Chungcheong Province. The city planned to provide 300,000 won per resident before Chuseok, totaling 53 billion won, under the title “Economic Recovery Support Payment,” but the city council blocked the move. On August 11, the council voted on the relevant ordinance, with all seven Democratic Party members in favor and all seven People Power Party members opposed, resulting in a tie that led to the bill’s rejection.

People Power Party council members argued that the city’s economic indicators had not deteriorated to the point of needing universal financial aid for all citizens, and that fully funding 53 billion won from the municipal budget would place too much strain on finances. In response, Democratic Party members countered that the same promise had been part of the People Power Party’s campaign pledges during the local elections, criticizing the move as "unjustified obstruction of city policy."

There are also local governments that have considered payments but have not set a timeline due to issues around securing funds or passing ordinances. Jangseong County in South Jeolla Province announced a plan to provide 600,000 won per resident, but a specific disbursement date has yet to be set. They are even considering dividing the payment over two years, starting in 2028.

Jangseong County and Jangseong County Council Office Building. Jangseong County

Muan County had planned to distribute 100,000 won per resident, but with no related ordinance in place, it is now drafting a new ordinance and expects to make the payments toward the end of this year.

Gwangyang City pledged to provide 300,000 won per person, but as it reviews its fiscal situation, the city has begun restructuring expenditures and is reconsidering the implementation. The possibility of a phased approach, depending on the funding situation, is also being discussed.

Changwon City in South Gyeongsang Province is also considering the program; however, given its population of about one million, it is expected to take time to determine the total budget required, eligible recipients, and payment amounts.

The core issue is that even within the same metropolitan region, eligibility for support payments can depend on one’s specific local district. In cases where neighboring districts differ on whether to provide payments, residents inevitably question, "Why aren't we receiving support?"

While local governments argue that these are policies based on region-specific fiscal and economic conditions, from the resident’s perspective, the fact that they might not receive the same type of aid as others simply because of where they live could fuel further debates about fairness.

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