Seongnam, a city in Gyeonggi Province, has decided to provide 100,000 won ($70) per household in "Energy Relief Payments" to all households in the city in response to rising energy prices caused by the Middle East crisis. Seongnam Mayor Shin Sang-jin said he would move quickly, stating, "Rather than waiting for the central government's decision, we will respond first."
Shin held a press conference at City Hall on the morning of the 6th and said, "As oil and energy prices surge due to international instability, the burden on citizens' daily lives is growing." He added, "We decided on this support to mount a responsible response at the local government level."
Diesel prices for vehicles in the Gyeonggi Province area have risen from 1,574 won to 1,943 won per liter, an increase of 369 won compared to pre-war levels, reflecting a growing burden felt by residents.
The funding will be secured through a supplementary budget. The city plans to minimize the impact on fiscal soundness by drawing from its Integrated Fiscal Stabilization Fund without issuing municipal bonds.
Once the legal basis is established, the city plans to urgently compile a supplementary budget of approximately 42 billion won ($29 million) to provide 100,000 won to each of the 410,000 households in Seongnam as of 6 p.m. that day.
The city expects it can begin distributing the relief payments as early as the beginning of May if the revised ordinance and supplementary budget are approved at the city council's extraordinary session scheduled for the 16th through the 20th. Cash payments are being considered as the distribution method, and the city said it will announce the application process once details are finalized.
The city's relief payment is being pursued separately from the central government's "High Oil Price Damage Relief Payment," which the government plans to provide to the bottom 70% of income earners through a supplementary budget. Residents will be eligible to receive both.
The city had already announced emergency livelihood measures on March 31, including strengthened local currency benefits and expanded support for small business owners. Mayor Shin said, "This support is not a simple fiscal expenditure but a responsible choice to protect citizens' lives." He added, "Seongnam will leverage its fiscal capacity to reduce living anxieties and respond swiftly."
Meanwhile, the central government plans to provide high oil price damage relief payments ranging from 100,000 won to 600,000 won to approximately 35.8 million people in the bottom 70% income bracket. Payments are targeted for this month for vulnerable groups and by May for the rest.