President Lee Jae-myung emphasized on Monday that the government will "invest more than 10 trillion won ($7.2 billion) in three major packages to ease the burden of high oil prices on the public," as part of a supplementary budget proposal.
Lee outlined the details of the 26.2 trillion won supplementary budget during a policy address to the National Assembly. "We have allocated 5 trillion won in contingency reserves for the smooth operation of the petroleum price cap currently in effect, as well as to respond to fluctuations in exchange rates and fuel costs," Lee said.
"We will provide graduated support ranging from a base of 100,000 won to a maximum of 600,000 won per person for approximately 36 million citizens in the bottom 70% income bracket, based on income level and regional priority principles," Lee said. "The support will be distributed through local currency to help small business owners and self-employed merchants in local communities and neighborhood commercial districts, and is designed to contribute to economic revitalization."
"We will also strengthen energy welfare support for vulnerable groups directly exposed to high oil prices, including low-income households and farmers and fishermen," Lee said. "Among energy voucher recipients in the low-income bracket, 200,000 households using kerosene and LPG will receive an additional 50,000 won in support, and we have significantly expanded oil price-linked subsidies as well as fertilizer and feed purchase subsidies for farmers and fishermen."
Lee added, "We have also significantly expanded the K-Pass reimbursement rate to reduce the transportation cost burden for ordinary citizens who use public transit."