This Country Is Giving Away Cash Coupons Worth Rs 2.19 Lakh Crore To Its Citizens

Last Updated:July 08, 2025, 18:14 IST

Every South Korean citizen will receive 150,000 won (approximately Rs 9,150), through either credit or debit cards, prepaid cards, or government-issued gift certificates

The initiative is backed by a massive budget of 31.8 trillion won (roughly Rs 2.19 lakh crore). (Reuters Image)

In a bold and unprecedented move to counter economic stagnation, South Korea, Asia’s fourth-largest economy, has announced a sweeping nationwide cash distribution programme aimed at boosting domestic consumption and fighting off recessionary trends. Beginning July 21 and continuing through September 12, the Korean government will roll out “consumption coupons" to all its citizens, offering direct cash assistance in various forms.

The initiative, backed by a massive budget of 31.8 trillion won (roughly Rs 2.19 lakh crore), marks the government’s first major economic relief package targeted specifically at invigorating local demand. The Ministry of the Interior and Safety has confirmed that by June 18, preparations were already in place to ensure smooth delivery of benefits.

Under the programme, every South Korean citizen will receive 150,000 won (approximately Rs 9,150), through either credit or debit cards, prepaid cards, or government-issued gift certificates. While the base amount is standard, the government has built in several layers of enhanced assistance for the economically vulnerable and those living outside the capital region.

Citizens residing in regions beyond Seoul will receive an additional 50,000 won (about Rs 3,050), as part of a strategy to bridge urban-rural economic gaps. The government is also paying special attention to low-income households and single-parent families.

According to a report by The Korea Herald, such families will be eligible for 300,000 won (roughly Rs 18,300), while individuals receiving Basic Living Allowance will get 400,000 won (about Rs 24,400).

Further, a second phase of financial support is scheduled between September 22 and October 31, during which another installment of 100,000 won (approximately Rs 6,000) will be distributed to low-income individuals.

The scheme comes at a time when South Korea is battling weakening consumer confidence, sluggish domestic spending, and external trade pressures. Policymakers hope that by putting money directly into the hands of citizens, they can spark a revival in retail activity, service-sector demand, and overall economic sentiment.

The ambitious relief plan underscores Seoul’s growing concern over an economic slowdown, and reflects a broader trend seen in post-pandemic economies where governments are increasingly resorting to direct cash transfers to stimulate demand.

Location :

Seoul, South Korea

First Published:

News world This Country Is Giving Away Cash Coupons Worth Rs 2.19 Lakh Crore To Its Citizens