The South Korean government began distributing a second round of high-oil-price relief payments on May 18, 2024 [1].
This initiative aims to reduce the financial burden on citizens as rising oil prices and a prolonged crisis in the Middle East continue to drive up the cost of living [1, 2].
Eligible households can receive a maximum payment of 250,000 won [1]. According to a report from YTN, approximately 36 million people are eligible for this second round of assistance [1].
Eligibility is determined by household size and income levels, specifically measured through health-insurance premiums. For a single-income household of four people, the monthly premium must be 320,000 won or less [1]. For dual-income households of five people, the threshold is a monthly premium of 390,000 won or less [1].
The Ministry of the Interior and Safety has established high-asset exclusions to ensure the funds reach those most in need. Individuals with financial income exceeding 20,000,000 won are excluded from the program [1]. Additionally, those with a property-tax base exceeding 1,200,000,000 won are ineligible [1].
"The second payment of the 'high-oil-price relief fund' to ease the burden of prices due to the prolonged Middle East situation begins today (the 18th)," a YTN anchor said [1].
Song Kyung-joo, the head of the Local Government Finance and Economy Office at the Ministry of the Interior and Safety, previously detailed the asset thresholds. He said that for a single-home owner, a public announcement price of 2.6 billion won or more would generally trigger exclusion [1].
“Eligible households can receive a maximum payment of 250,000 won”
The disbursement of these funds reflects the South Korean government's attempt to stabilize domestic consumption amid global energy volatility. By utilizing health-insurance premiums and property-tax bases as proxies for wealth, the state is attempting a targeted fiscal intervention to prevent inflation from disproportionately impacting lower- and middle-income families.
