Across South Korea, a sweeping government initiative is rolling out to help millions of citizens weather the storm of high oil prices, surging exchange rates, and persistent inflation. As the cost of living bites hard and global energy markets remain volatile, local governments from Daejeon to Hoengseong are mobilizing to deliver the much-anticipated 'high oil price damage support fund'—a lifeline designed to ease burdens for the nation’s most vulnerable and stimulate local economies.
The Ministry of the Interior and Safety, in a move widely seen as both timely and necessary, has set the framework for this program, targeting 70% of the population with differentiated payouts based on income level and region. According to the Ministry’s official Q&A, "The support fund targets 70% of the population with amounts varying by income level and region." The first phase prioritizes basic livelihood recipients, near-poverty groups, and single-parent families, while the second phase extends to the broader bottom 70% of income earners, with payment amounts reflecting where recipients live and their specific circumstances. For example, those in non-metropolitan and special population decline areas receive higher sums than their metropolitan counterparts.
In Daejeon, city officials have set up a dedicated task force to oversee the rollout. The city’s first application period opens April 27 and runs through May 8, 2026, offering 600,000 KRW to basic livelihood recipients and 500,000 KRW to near-poverty and single-parent families. Others eligible will receive 150,000 KRW during the second round, which runs from May 18 to July 3. Daejeon’s approach is thorough: to reduce application congestion, the first week of each phase uses a birth year last digit system to determine application days. Citizens can apply online through regional gift certificate apps, card company websites, or by phone, or offline at banks and welfare centers. The funds, distributed via credit/debit cards or regional gift certificates, must be spent within Daejeon by August 31, or they expire.
Gumi City, facing similar economic pressures, convened an expanded executive meeting to ensure a smooth process. According to Daily Daegu Gyeongbuk News, Acting Mayor Jung Sung-hyun underscored the urgency, stating, "The high oil price damage support fund is directly linked to public livelihood stability. The key is speed and accuracy that citizens can actually feel." Gumi’s system mirrors national guidelines: 600,000 KRW for basic livelihood recipients, 500,000 KRW for near-poverty and single-parent families, and 150,000 KRW for the bottom 70%. Payments are processed swiftly, often the day after application, with the city deploying temporary workers and expanding staff at local centers to handle the expected surge in demand. A visiting application service ensures the elderly and other vulnerable groups aren’t left behind.
Jeongeup City, in North Jeolla Province, is also gearing up for the April 27 launch. Here, the support fund is seen as both a buffer against rising prices and a catalyst for local small business. The city’s mayor, Lee Hak-soo, expressed hope that "the high oil price damage support fund will provide practical help to citizens suffering from price hikes and boost local consumption, thereby increasing sales for small business owners." The city has established a dual-phase application process, with the first phase for the most vulnerable and the second for the broader eligible population. Notably, the support can only be spent at local small businesses and affiliated stores, with restrictions on use at entertainment venues, gambling establishments, online retailers, and large foreign-owned outlets. Jeongeup has also issued warnings about phishing scams, advising residents to ignore suspicious text messages claiming to be from the support fund program.
Goesan County, designated as a special support area due to population decline, has completed its preparations following a task force meeting led by Vice Governor Lee Su-hyun. Here, payment amounts are slightly higher for the bottom 70%—250,000 KRW per person—reflecting additional support for regions facing demographic challenges. Applications are split into two periods, and, as elsewhere, those who miss the first phase can apply in the second, but double-dipping is not allowed. Funds must be used by August 31 at local businesses, reinforcing the program’s dual aim of aiding citizens and supporting small enterprises.
Hoengseong County in Gangwon Province, another area facing population decline, is accelerating preparations to ensure prompt and complete payment. The county offers 600,000 KRW to basic livelihood recipients, 500,000 KRW to near-poverty and single-parent families, and 200,000 KRW to general residents in the bottom 70%. Applications can be made in person or online, with the county’s economic policy chief, Lee Young-chul, stating, "We hope this support fund will be of real help to Hoengseong residents during this period of high inflation and high oil prices. We are committed to rapid and complete payment without omissions."
Throughout the country, the application process is designed for accessibility and efficiency. Applicants can choose their preferred payment method—credit or debit cards, prepaid cards, or regional gift certificates (card type)—but paper gift certificates are excluded. Online applications are encouraged, but offline options remain available for those less comfortable with technology. For those unable to apply themselves, such as the elderly or disabled, a visiting application service can be requested by phone, ensuring no one is left out due to mobility or digital literacy barriers. Required documents include valid identification, and for minors, applications must be made by the household head.
To prevent initial chaos, a birth year last digit day-of-week system is universally applied during the first week of both application phases. This simple but effective measure, used in Daejeon, Jeongeup, Goesan, and Hoengseong, helps distribute applicants evenly across days, minimizing wait times and administrative overload.
Importantly, the Ministry of the Interior and Safety reminds citizens that those who receive funds in the first phase are not eligible for the second—no double-dipping allowed. Notifications about payment amounts and application methods can be requested via 20 different mobile apps or the national secretary website, with details sent two days before the relevant application period. The ministry has also published detailed guidance on required documents and the application process, emphasizing transparency and ease of access.
As the deadline for spending the funds approaches—August 31, 2026—any unused balance will simply disappear, a measure designed to encourage prompt local spending and maximize the program’s economic impact. Citizens can submit objections regarding support fund payments until July 17, 2026, and dedicated call centers in each city and county are ready to answer questions and resolve issues.
Across South Korea, local leaders have voiced their commitment to delivering this support efficiently and fairly. As Lee Su-hyun of Goesan put it, "It is urgent to reduce the burden on citizens suffering from high oil prices. We will do our best to ensure that citizens receive the support without inconvenience." With a coordinated push from central and local governments, this ambitious program aims not only to ease the immediate pain of high prices but also to channel much-needed spending to local economies, giving small businesses a fighting chance in turbulent times.