July 22, 2025
SEOUL – South Korea launched its stimulus coupon program on Monday, opening applications for the cash grants aimed at boosting domestic spending and reviving the sluggish economy.
The Ministry of the Interior and Safety opened the first round of applications for the so-called “consumption coupons for livelihood recovery,” the total budget for which weighs in at 13.9 trillion won ($10 billion).
President Lee Jae Myung expressed confidence that the government’s stimulus coupon initiative would prove effective.
“The economy is heavily driven by sentiment. The number of people who believe the economy will improve next year is the highest in eight years. If we give just a little initial nudge, a virtuous circle could begin,” Lee said at a press conference held earlier this month.
However, there are concerns that the coupon program could add strain to the government’s fiscal health, which has already been put to the test.
On July 5, the National Assembly approved a supplementary budget of 31.8 trillion won to implement domestic stimulus measures, including the coupon distribution program.
With the extra budget, the country’s national debt is projected to reach 1,301.9 trillion won by the end of this year, equivalent to 49.1 percent of the country’s gross domestic product.
According to the ministry, 4.15 million individuals signed up for the coupons as of noon Monday, accounting for 8.21 percent of the eligible recipients. Coupons amounting to 754.5 billion won were distributed.
Applications this week are staggered by birthweek, meaning only about a fifth of eligible people can apply each day. Despite this, some of the online channels for the application experienced crashes and service disruptions earlier in the day due to overloading.
In the first phase, every individual — regardless of income or assets — will receive vouchers worth at least 150,000 won. Those in the second-lowest income bracket and single-parent families will receive 300,000 won, while recipients of the national basic living stipend will receive 400,000 won each. Applications will be open for eight weeks until Sept.12.
The second round of applications is slated to take place between Sept. 22 and Oct. 31. During this phase, an additional 100,000 won will be provided per person, excluding those on the top 10 percent of incomes.
For this week, applications are scheduled by the last digit of the applicant’s birth year through both online and offline channels: 1 & 6 on Monday; 2 & 7 on Tuesday; 3 & 8 on Wednesday; 4 & 9 on Thursday and 5 & 0 on Friday. From the next Monday, applications will be open to everyone regardless of birth year.
Individuals can choose to receive the cash handouts in a preferred form: as a credit or debit card recharge, prepaid card, or a regional voucher.
Credit and debit card users can receive their coupons the day after applying. Regional vouchers may be issued either on the same day or the day after the application.
Foreign nationals who are registered with Korean family members in resident registration records can receive the coupons.
This includes permanent residents (F-5), marriage migrants (F-6) and recognized refugees (F-2-4) who are covered by the national health insurance system or receive medical aid.
The coupons can be used at small retailers with annual sales under 3 billion won, including traditional markets, local grocery stores, restaurants and franchise stores operated by individual owners.
The coupons can only be used within specific cities or regions, depending on where they were issued. For example, a Gyeonggi Province resident cannot use the coupon at a restaurant in Seoul.
If the coupon is issued in areas outside a metropolitan city, it can be used within cities and counties in the province where the issuing agency is located.
The coupons cannot be used on public transportation, including buses or subways.
Both rounds of coupons are set to expire on Nov. 30, except for regional vouchers issued in paper form. The paper vouchers remain valid until their individual expiration dates. Unused funds will be reclaimed by the government.
silverstar@heraldcorp.com