President Lee Jae-myung Hints at Consumption Coupons for Vulnerable Groups Amid High Inflation

President Lee Jae-myung, chairing a State Council meeting at the Government Complex in Sejong on the 17th, indicated the necessity of a supplementary budget and the distribution of consumption coupons for vulnerable groups struggling with high oil prices. Amidst rising international oil prices stemming from Middle Eastern tensions and increasing pressure on household budgets, the government is considering direct support to low-income individuals through local currency during this supplementary budget period.

The surge in crude oil prices is acting as a catalyst, driving up domestic energy and transportation costs, which in turn are pushing consumer prices higher. Following analyses suggesting that expanded fiscal spending during the pandemic contributed to a 0.1-0.35 percentage point increase in inflation, discussions are centering on targeted support for vulnerable populations rather than universal handouts.

During the State Council meeting, President Lee Jae-myung emphasized the need for substantial support for local regions in the formulation of the supplementary budget.