The South Korean government is reviewing a plan to allow high-oil-price relief payments to be used at gas stations with annual revenue exceeding 3 billion won ($2.2 million), sources said.
Lee Kyu-yeon, senior presidential secretary for public relations, said on KBS Radio on Saturday that President Lee Jae-myung instructed his secretaries the previous day to gather opinions on the restriction barring use of the subsidy at gas stations with annual revenue above 3 billion won.
"The president said, 'What the public intuitively perceives this as is a subsidy for damage from high oil prices, so shouldn't they at least be able to fill up their tanks?' and directed us to review the matter in the direction of lifting the restriction," Lee said.
The high-oil-price relief payments, which began on Nov. 27, provide between 100,000 won and 600,000 won per person on a differentiated basis to the bottom 70 percent of income earners, in response to the fallout from the Middle East conflict. The subsidy can be used at small business establishments with annual revenue of 3 billion won or less, including traditional markets, neighborhood marts, and franchise outlets such as convenience stores, chicken restaurants and bakeries.
However, complaints have emerged that the subsidy cannot be used at gas stations with annual revenue above 3 billion won. The gas station industry argues that the 3 billion won revenue threshold fails to reflect the characteristics of the business. According to the Korea Petroleum Association, fewer than 30 percent of the roughly 10,000 gas stations nationwide are estimated to have annual revenue of 3 billion won or less. Industry officials note that because taxes account for a large portion of fuel prices, gas stations show disproportionately large revenue relative to actual profits.
