Seoul
South Korea will begin distributing cash assistance later this month to support households facing rising living costs triggered by the Middle East crisis.
The government said the aid will target the bottom 70% of income earners, with a phased rollout starting April 27 for the most vulnerable and expanding to others from May 18.
Around 32.5 million people are expected to benefit, receiving between 1,00,000 won ($67.30) and 6,00,000 won depending on income levels and regional factors. The payments are part of a broader relief package aimed at cushioning the economic impact of elevated oil prices and global uncertainty.
The National Assembly of South Korea recently approved a supplementary budget of 26.2 trillion won to address the fallout from ongoing geopolitical tensions. The Cabinet subsequently cleared the plan, with Prime Minister Kim Min-seok emphasising swift and efficient implementation.
Of the total package, 6.1 trillion won has been allocated specifically for the cash assistance programme. Beneficiaries will receive funds via debit cards, prepaid cards or regional gift vouchers, which must be used by August 31, after which unused balances will revert to the state.
Meanwhile, supply concerns persist as disruptions continue in the Strait of Hormuz despite a ceasefire between the United States and Iran. National Security Adviser Wi Sung-lac said shipping traffic remains constrained, raising concerns over energy imports.
The government is working to secure alternative supply routes for crude oil and petrochemicals, warning that uncertainty in global supply chains may continue in the near term.