As South Korea grapples with the economic fallout from surging oil prices—exacerbated by ongoing conflict in the Middle East—the government has rolled out a sweeping support package aimed at shielding its most vulnerable citizens from mounting energy costs. Beginning April 27, 2026, the distribution of the highly anticipated "high oil price damage support fund" will commence, marking a significant intervention designed to ease the daily burden on millions across the nation.
The supplementary budget bill, which recently cleared the National Assembly, earmarks a substantial portion of relief for low- and middle-income households. According to reports from LG Hello Vision, the rollout will be staged: basic livelihood security recipients and near-poverty households can apply for support between April 27 and May 8. Subsequently, from May 18, the bottom 70% of income earners will become eligible to submit their applications, with the process running until July 3 in some regions. The support amounts vary, ranging from 100,000 KRW to as much as 600,000 KRW per person, depending on income level and local circumstances. Notably, residents of special population decline areas are set to receive a flat 250,000 KRW.
The government has introduced a day-of-week application system, based on the last digit of an applicant’s birth year, to prevent congestion at service centers and online portals. Applications can be filed through card company websites, the Government24 platform, or by visiting local community centers. For those less comfortable with digital tools, offline options at administrative welfare centers and affiliated bank branches remain available.
Regional governments are also stepping up. In Jangheung County, Jeollanam-do, officials have announced a tailored support plan, as detailed by NewsKkam. Here, the first payment round will see basic livelihood recipients receive 600,000 KRW, while near-poverty and single-parent families are eligible for 500,000 KRW. The second round, open to the bottom 70% income residents, offers 250,000 KRW per person. Importantly, vulnerable groups who miss the initial window can still apply during the second phase. The funds are distributed through credit and debit cards, which are only usable at small businesses with annual sales below 3 billion KRW, as well as via the Jangheung Love gift certificate, redeemable at participating local stores.
Yet, the program’s implementation has exposed significant gaps—especially in the very places where relief is most needed. According to an investigation by Weekly Hankook, only 42% of gas stations nationwide accept the regional love gift certificates that form the backbone of the support fund. This means, astonishingly, that nearly six out of ten gas stations are off-limits for the intended relief, a fact that has drawn sharp criticism from both citizens and lawmakers alike.
The situation is even more dire in the Seoul metropolitan area, where a mere 12% of gas stations participate: just 9% in Gyeonggi Province, 19% in Incheon, and 23% in Seoul proper. Other major cities fare little better, with acceptance rates at 20% in Busan and 26% in Daejeon. In Ulsan, the issue is compounded by a local ordinance that excludes gas stations from the gift certificate system entirely, leaving over one million residents without any way to use their support funds for fuel purchases.
Legislator Cheon Haram did not mince words during a recent session of the National Assembly’s Special Committee on Budget and Accounts. “It’s a bit ridiculous to call this a high oil price damage support fund when people can’t use it at gas stations,” Cheon remarked, according to Weekly Hankook. He pressed the government to make an exception for gas stations, at least temporarily, so that recipients could actually buy fuel—a primary expense the fund was designed to offset. However, the Ministry of the Interior and Safety stood firm, reiterating on April 11 that the principle of restricting usage to businesses with annual sales below 3 billion KRW would remain in force. Cheon fired back, “It’s misleading citizens to give them gift certificates branded as oil price relief when they can’t buy a drop of fuel. At the very least, the ministry should revise its guidelines so that gas stations are included.”
In Tongyeong City, Gyeongsangnam-do, authorities are juggling the rollout of not just the national support fund but also a provincial living support grant. The latter, funded by Gyeongnam Province, is a universal payment of 100,000 KRW per resident, including marriage immigrants and permanent residents, as reported by Hansan News. Applications for the provincial grant open on April 30 and run until June 30, while the national oil price support fund follows the same two-phase schedule as elsewhere. Here too, application days are staggered by birth year, and the city has set up a dedicated team led by the deputy mayor to ensure smooth processing and to reach those who may have trouble accessing services, such as the elderly or disabled.
Both the national and provincial funds are distributed via credit/debit cards or prepaid cards, and can be used at small businesses within Tongyeong with annual sales under 3 billion KRW—including traditional markets, local supermarkets, restaurants, hospitals, and pharmacies. The usage period for the oil price support fund extends until August 31, while the provincial grant must be used by July 31.
Officials in Tongyeong are keen to avoid confusion, given the overlapping timelines and eligibility criteria for the two support programs. They are urging residents to check application periods carefully and are offering outreach services to ensure that no one falls through the cracks. As the acting mayor, Yun In-guk, put it, “We hope these support initiatives become a strong pillar for citizens struggling with high prices. We will focus all our administrative resources to ensure swift and thorough execution.”
Despite these earnest efforts, the limitations on where the support funds can be spent remain a sticking point. The exclusion of large gas stations—those with annual sales over 3 billion KRW—from the gift certificate system was originally intended to bolster small local businesses and prevent funds from flowing to big chains. However, with oil prices continuing to climb and fuel representing a major household expense, many are questioning whether the policy’s benefits outweigh its drawbacks, especially in urban centers where small, independent gas stations are few and far between.
As the first payments begin to reach recipients, the effectiveness of the government’s high oil price damage support fund will be closely watched—not just for its immediate impact on household budgets, but for what it reveals about the challenges of crafting targeted, equitable relief in a rapidly changing economic landscape. For now, millions of Koreans are navigating the fine print, hoping that the much-needed assistance will help them weather the storm.