The city of Seongnam is launching an emergency relief fund covering all residents — the first of its kind in South Korea — in response to surging energy prices driven by the war in the Middle East.
Seongnam Mayor Shin Sang-jin held a press conference at city hall on Sunday and announced the "Seongnam Citizens' Energy Relief Fund" to stabilize residents' livelihoods.
"Rising energy prices are directly affecting citizens' daily lives, so local governments must act first rather than wait for the central government's response," Shin said. "We will push forward with responsible measures to protect the stability of citizens' lives."
The fund targets approximately 410,000 heads of household registered as Seongnam residents as of 6 p.m. on April 6, 2026. Each household will receive 100,000 won (approximately $70). The total support amounts to roughly 41 billion won ($29 million). The city explained that the payment amount was calculated to reflect the sharp increase in fuel costs over the past three months.
Energy prices have indeed been climbing steeply due to recent global instability. Heightened military tensions in the Middle East have fueled concerns over resource supply, prompting the government to raise its resource security crisis alert on April 2 under the Special Act on National Resource Security. The alert level for crude oil was elevated from "caution" to "alert," and for natural gas from "interest" to "caution."
The impact has been immediately felt in domestic consumer prices. Diesel prices in Gyeonggi Province rose approximately 369 won per liter, from 1,574 won to 1,943 won, significantly increasing the financial burden on residents.
Seongnam is fast-tracking a supplementary budget to ensure swift delivery of the funds while also accelerating related regulatory preparations. The Seongnam City Council has been pushing since April 3 to amend local ordinances aimed at easing residents' energy cost burdens during the resource security crisis.
If the supplementary budget and ordinance amendment are completed smoothly, the city plans to issue the funds as early as the beginning of May following a promulgation process at the end of this month. The city aims to streamline administrative procedures to minimize inconvenience for residents while ensuring both speed and equity in the distribution process.
"This support goes beyond a simple cash payment — it demonstrates the proactive role of local government in protecting citizens' lives," Shin said. "Based on our solid fiscal capacity, we will continue responding to crises so that citizens can maintain their daily lives with peace of mind."