₩4.8 Trillion Local Currency Support Approved in 2026 Supplementary Budget
In 2026, the government will allocate a ₩4.8 trillion supplementary budget to stimulate the national economy and revitalize local economies. A key component of this budget is local currency support, providing between ₩100,000 and ₩600,000 to approximately 70% of the population. This initiative aims not only to boost consumption but also to increase revenue for small business owners and the self-employed, ultimately strengthening the self-sufficiency of local economies. This news will be especially welcome for vulnerable populations struggling since the COVID-19 pandemic.
Who Gets What? A Detailed Analysis of Eligibility and Amounts
This local currency support will be distributed based on income level. While specific criteria are yet to be finalized, the government plans to provide support to the bottom 70% of income earners. The amount received will vary based on income level and household size, with expected payments ranging from ₩100,000 to ₩600,000. For example, those receiving basic livelihood security or in near-poverty conditions are likely to receive larger amounts. Similarly, larger households may receive more support than single-person households. The government has stated it is carefully reviewing the criteria to ensure maximum benefit for citizens.
Revitalizing Local Economies: Expected Impact of Local Currency Support
Local currency support is expected to positively impact local economic revitalization. Because local currency can only be used within specific regions, the support funds are likely to be spent locally. This will lead to increased revenue for local small business owners and the self-employed, injecting vitality into the overall local economy. Furthermore, since local currency is often restricted from use at large supermarkets or department stores, it can strengthen the competitiveness of small-scale shops like traditional markets and neighborhood businesses. The government anticipates that this local currency support will revive struggling local economies and promote balanced regional development.
Challenges for Successful Implementation of Local Currency
Several challenges remain for the successful implementation of local currency. The most important is expanding the number of participating merchants and improving ease of use. Currently, many regions face criticism for having too few merchants that accept local currency or for complicated usage methods. Therefore, the government must expand the number of participating merchants and introduce various payment methods, such as mobile apps or cards, to improve ease of use. Efforts are also needed to reduce local currency issuance and operating costs, and to prevent illegal distribution. Building a transparent and efficient local currency operating system to gain public trust is crucial.
“This local currency support goes beyond a simple economic stimulus; it will contribute to strengthening the self-sufficiency of local economies and fostering a sense of community. However, sustained interest and effort are needed for successful implementation.” - Kim Min-soo, Research Fellow, Hyunbit Welfare Foundation Welfare Policy Research Institute
Future Outlook and Policy Direction
The local currency support provided through the 2026 supplementary budget is expected to play a significant role in stimulating the national economy and revitalizing local economies. Based on the experience gained from this support, the government plans to pursue various policies to further revitalize local economies. For example, strengthening the competitiveness of local economies through the development of tourism products utilizing local specialties or support for local youth entrepreneurship. It is also important to actively gather opinions from local residents to develop customized local policies and encourage community participation. The government will continue its efforts to revitalize local economies. The ₩4.8 trillion supplementary budget is just the beginning. Local economic revitalization is an important investment for the future of Korea. 2026 will be the first year of local economic growth. Don't miss out on the support of up to ₩600,000. Check out the details now.