Hanam City in Gyeonggi Province is allocating a 30 billion won emergency supplementary budget and significantly expanding local currency benefits to preemptively respond to economic instability stemming from the Middle East.
The city announced Thursday that it will allocate a 30 billion won emergency supplementary budget, including 6 billion won from its own funds, ahead of the central government's supplementary budget execution, launching measures to stabilize residents' livelihoods. Hanam has established a "Middle East War Response Emergency Economic Task Force" that will operate continuously until the situation stabilizes.
The most tangible measure for residents is the expansion of the local currency program. The annual issuance will increase to 120 billion won, and the discount rate will rise from 8% to 10% from May through August. The monthly purchase limit will also be expanded to 300,000 won.
During the "Music in Hanam" festival starting on the 17th, a 5% cashback of up to 30,000 won per person will be provided immediately for local currency payments.
The special guarantee program for small business owners will also be expanded from 10 billion won to 15 billion won. Through the Middle East Crisis Response Special Business Fund, the city will provide a 2.0 percentage point interest rate subsidy on loans of up to 500 million won per business. A new export logistics cost support program will be established for companies exporting to the Middle East to ease their increased logistics burden.
Public utility burdens will also be reduced. Fees for water and sewage services and waste bag prices will be frozen, with three months' worth of waste bags already secured. An additional 1.5 million bags will be secured by May to prepare for supply instability. Energy-vulnerable households using heating oil and LPG will receive an additional temporary 50,000 won per household on top of the existing 147,000 won energy voucher.
The city will operate a reporting center for oil hoarding activities and continuously monitor gas station prices to maintain market stability. A vehicle restriction system—odd-even days for private cars at city hall and affiliated institutions, and every-fifth-day restrictions at public parking lots—will take effect starting Thursday.
"We will concentrate all available administrative resources in preparation for the possibility of prolonged instability in the Middle East region," Mayor Lee Hyun-jae said. "We also ask residents to refrain from panic buying caused by excessive anxiety and to participate in energy conservation efforts."