Economic stimulus: A clothing store in Mokpo, South Korea. The country’s government plans to provide vouchers for purchases at small businesses and boost EV sales. — Bloomberg
SEOUL: The government and ruling party say they plan to allocate over 5.5 trillion won or about US$4.1bil for measures to improve people’s livelihoods, including bigger discount coupons for small businesses and subsidies for electric vehicle (EV) users.
The announcement comes as the Democratic Party of Korea has upped the ante in its pledges and policies to improve people’s livelihoods, with the main opposition’s Lee Jae-myung re-elected as the party’s leader in a landslide victory last Sunday.
Observers say Lee has chosen the “improvement of people’s livelihoods” as the key on his path to becoming a candidate for the 2027 presidential election.
“While several economic indicators have reflected (the improvement of the overall economy), people’s livelihoods remain difficult,” People Power Party Floor Leader Choo Kyung-ho said during a meeting between senior government officials and the People Power Party at the National Assembly on Tuesday.
“Regarding next year’s budget plan, we hope that a sufficient part will be set aside to funnel financial support for the socially vulnerable and small businesses, as they are likely to face difficulties,” he added.
The Cabinet and ruling party agreed to issue a record 5.5 trillion won in Onnuri gift certificates, which are handed out as discount coupons for the purchase of products at traditional markets and small businesses.
Deputy Prime Minister and Economy and Finance Minister Choi Sang-mok added that a key goal of the government’s 2025 budget plan is to lift the country’s median income.
As of 2023, the median income for four-member households in South Korea stands at 5.4 million won a month, according to government data.
The officials also rolled out measures to achieve a greener society.
They plan to boost EV use in the country by agreeing to double subsidies for EV purchases to six million won for families with two or more children. On top of that, the discount rate for public transportation fares will be increased up to 50% for multi-children households.
To boost safety for EV drivers and tackle a surge in related fire hazards, they will increase the distribution of EV chargers with fire prevention functions to 90,000 units.
An additional budget will be set aside for the purchase and installation of unmanned water cannons and other fire equipment.
Police recently launched an investigation into a massive fire caused by a Mercedes-Benz electric vehicle at an underground parking lot of an apartment complex in Incheon on Aug 1, while reviewing criminal charges against the management staff at the complex.
The fire damaged 140 cars in the parking lot.
“The government will strengthen its response system to address newly emerging disasters and crimes, such as EV fires,” said Choi. — The Korea Herald/ANN
