South Korea Cash Handouts to Boost Economy

Intermediate | June 23, 2025

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South Korea Cash Handouts: Helping Hand for the Economy

Why is South Korea Giving Out Cash?

Hey everyone! Let’s talk about some interesting news from South Korea. The government there is planning to give money directly to its people. This plan is part of a big effort to help the country’s economy, which has been a bit slow lately. The idea is that if people have more money, they will spend it, and that will help businesses and the overall economy grow. This move is part of the broader plan known as the South Korea cash handouts strategy.

How Much Will People Get?

The amount of money people might receive is between 150,000 and 500,000 Korean Won. This is roughly equal to about 110 to 367 US dollars, depending on the exact exchange rate. The government hopes this financial boost will encourage everyone to open their wallets and spend, giving the economy a much-needed push.

Who Gets How Much?

A Tiered Distribution System

So, how will this money be given out? It won’t be the same amount for everyone. The plan is to give a basic amount of 150,000 won to all South Koreans, no matter how much they earn.

Extra Help for Low-Income Groups

But, people in lower-income groups will get more. The amount will be based on household income, often figured out using national health insurance information. The goal is to provide more help to those who need it most, with the maximum amount of 500,000 won going to the lowest-income individuals, such as basic welfare recipients.

Timing and Budget

This cash handout plan is part of a larger supplementary budget the government is preparing. This extra budget is quite large, potentially over 20 trillion won. The government recently approved this plan and is now getting ready to send it to the National Assembly for final approval. If everything goes smoothly, people might start receiving the money as early as next month.

Why the South Korea Cash Handouts? And What’s Next?

Breaking the Vicious Cycle

The main reason for this move is to “spur domestic consumption,” which is a business way of saying “make people buy more things.” The economy has faced challenges, including slower growth and issues affecting small businesses. By putting money directly into people’s hands, the government hopes to break a “vicious cycle” of economic hardship.

Differing Opinions and the Final Decision

Of course, big plans like this often have different opinions. While many support helping people and the economy, some worry about the cost and how it might affect the national debt. The decision is now with the National Assembly to give their approval.

Vocabulary

Handout (noun): A gift of money or help. Often given by a government or organization.
*Example: “The government is planning a cash ‘handout’ to help families.”
Stimulate (verb): To encourage something to happen or develop.
*Example: “They hope the money will ‘stimulate’ the economy.”
Economy (noun): The system of how money is made and used within a country or region.
*Example: “The country’s ‘economy’ is facing some challenges.”
Supplementary Budget (noun): An additional government budget created during the financial year, usually to address unexpected needs or boost the economy.
*Example: “The cash handouts are part of a new ‘supplementary budget’.”
Domestic Consumption (noun): Spending by people and businesses within their own country.
*Example: “The plan aims to increase ‘domestic consumption.'”
Livelihood (noun): A means of securing the necessities of life; a person’s way of earning money.
*Example: “The payments are meant to support people’s ‘livelihoods.'”
Tiered (adjective): Arranged in levels or categories.
*Example: “The payments will be ‘tiered’ based on income.”
Income Bracket (noun): A range of income levels used for things like taxes or benefits.
*Example: “People in lower ‘income brackets’ will receive more.”
Approve (verb): To officially agree to or accept something.
*Example: “The Cabinet needs to ‘approve’ the plan before it goes to the National Assembly.”
National Assembly (noun): The main legislative body in South Korea, similar to a parliament or congress.
*Example: “The plan needs final approval from the ‘National Assembly.'”

Discussion Questions (About the Article)

What is the main reason the South Korean government is planning to give out cash?
How will the amount of money a person receives be decided?
Who will receive the largest amount of money?
What is a “supplementary budget,” and why is the government creating one now?
What are some concerns mentioned about this plan?

Discussion Questions (About the Topic)

Do you think giving people cash is a good way to help the economy?
What are other ways governments can try to stimulate the economy?
Should everyone receive the same amount in a situation like this, or should it be based on income?
What might be the positive or negative effects of a government giving money directly to its citizens?
Has your country ever had a similar program? What happened?

Related Idiom

Put money where your mouth is
Meaning: To support something with financial help; to show your support by spending money.
Example: “The government is deciding to ‘put money where its mouth is’ to boost the economy.”

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This article was inspired by: Yonhap News Agency, June 17, 2025