President Lee Jae Myung speaks during a Cabinet meeting held at the presidential office in Seoul on July 22, 2025. (Image courtesy of Yonhap)
SEOUL, July 22 (Korea Bizwire) — President Lee Jae Myung on Tuesday called on the government to ramp up efforts to boost domestic consumption alongside universal cash handouts, while also ensuring inflation is kept in check.
Lee made the remarks during a Cabinet meeting as the government began issuing cash handouts, called “consumption coupons,” following the first round of applications accepted on Monday.
The program offers a one-time payment of 150,000 won (US$108), with residents outside the greater Seoul area and low-income households eligible for payments of up to 450,000 won.
“While consumption coupons provide some income support, the more fundamental goal is to stimulate consumption,” Lee said. “I urge each ministry to prepare additional programs aimed at encouraging domestic consumption.”
Lee also warned against the risk of rising prices, calling on the government to implement measures to control inflation.
“This may cause some inflationary pressure,” he said. “But even when coupons weren’t distributed, prices continued to rise unreasonably for various reasons. (The government) should respond swiftly and firmly in managing inflation.”
The presidential office also warned that reselling or cashing in the consumption coupons without using them for their intended purposes is illegal.
“We have identified cases where prepaid cards were traded on secondhand market apps yesterday,” presidential spokesperson Kang Yu-jung said during a press briefing.
Kang stressed that individuals involved in such transactions may be required to return all or part of the cash handout, and face penalties and restrictions on subsidy programs in the future.
She also warned that merchants who claim the coupons without actually selling the goods could face up to three years in prison or a fine of up to 20 million won (US$14,400), and may have their registration revoked.
(Yonhap)
