Seoul, April 11 Cash assistance for the bottom 70 per cent of income earners will begin being rolled out later this month, the government announced on Saturday, as part of efforts to ease the financial strain caused by rising oil prices.
The aid will first reach the most vulnerable within that income bracket starting April 27 and expand to the broader eligible group May 18, reports Yonhap news agency.
Approximately 32.5 million people are eligible for the aid, with payments ranging from 100,000 won (US$67.30) to 600,000 won per person, depending on income level and region.
The National Assembly passed a 26.2 trillion-won extra budget bill the previous day to address the economic fallout from the ongoing Middle East conflict.
Earlier in the day, the Cabinet reviewed and approved the bill, and Prime Minister Kim Min-seok said the government will implement the budget in a speedy and effective way.
The cash assistance program, allocated at 6.1 trillion won, is part of that package.
Recipients may collect the funds in the form of debit cards, prepared cards or regional shopping gift cards. The money must be spent by Aug. 31, and any unused amounts will be returned to the state.
Meanwhile, National Security Adviser Wi Sung-lac said the passage of ships through the Strait of Hormuz still remains largely blocked despite a two-week ceasefire between the United States and Iran, pledging that South Korea would continue to seek alternative shipping lanes.
Speaking at a press briefing at Cheong Wa Dae, Wi stressed that the government will continue efforts to secure alternative supplies of crude oil and naphtha amid concerns over Iran's continued restrictions on traffic through the vital waterway.
"Shipping through the Strait of Hormuz remains disrupted," Wi said. "Uncertainty in the supply chains is likely to continue for the time being."
Wi noted that the number of vessels crossing the strait has not increased significantly since the ceasefire was agreed to on Tuesday (U.S. time).
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