Seoul gov't, district offices struggle to find funds for Lee administration's coupon program
Published: 15 Jul. 2025, 11:03
Updated: 15 Jul. 2025, 18:16
Audio report: written by reporters, read by AI
![President Lee Jae Myung dines with people at a restaurant in Gwanghwamun, central Seoul, on July 11. [YONHAP]](https://koreaseafood.online/data/photo/2025/07/15/6be4c7dd-68b1-4b32-9f04-54dd0a7056da.jpg)
President Lee Jae Myung dines with people at a restaurant in Gwanghwamun, central Seoul, on July 11. [YONHAP]
As the application period for the Lee Jae Myung administration’s public livelihood recovery coupons approaches on July 21, local governments are expressing deep concern over the financial burden.
“We’re on the verge of halting all district-level projects just to fund the consumer coupon program,” complained a district mayor in Seoul.
Districts left holding the bag
The JoongAng Ilbo obtained the estimated amount that Seoul’s 25 districts will need to fund the distribution of public livelihood recovery coupons to all citizens.
The total budget required to issue the coupons to Seoul residents is 2.32 trillion won ($1.67 billion), according to the Seoul Metropolitan Government and its 25 districts. The central government will cover 75 percent of the cost, while the remaining 579.43 billion won must be funded by the Seoul government and the district offices.
“We’ve already exhausted all available resources through the supplementary budget, so cost-sharing with the districts is unavoidable,” said a Seoul city official. “Although we haven’t finalized how to secure the funds, we’re considering all options — such as downsizing existing projects, identifying cost-saving programs and even issuing local bonds.”
![Seoul citizens crowd a traditional market in Seoul on July 7, the day when the Lee Jae Myung administration announced public livelihood recovery coupons. [YONHAP]](https://koreaseafood.online/data/photo/2025/07/15/1cfd55b2-c79c-4233-9dc4-1538a7194b70.jpg)
Seoul citizens crowd a traditional market in Seoul on July 7, the day when the Lee Jae Myung administration announced public livelihood recovery coupons. [YONHAP]
‘It feels like the sky is falling down’
District offices are also grappling with the situation. Among them, Songpa District is responsible for the largest local share at 16 billion won, followed by Gangnam at 14.4 billion won, Gangseo at 14.2 billion won, Gwanak at 13.5 billion won and Nowon at 13.1 billion won. Thirteen districts must each raise more than 10 billion won.
Even districts with smaller populations, such as Jung District and Jongno District, need to secure at least 3 billion won each.
Some district officials say that “the central government gets the credit, while local governments are left with the bill.”
Certain districts are deferring major projects to free up funds.
“The central government made grand pledges to distribute consumer coupons like a populist gesture, but the financial burden was shifted onto the already strained district governments,” said Yangcheon District Mayor Lee Ki-jae. “It’s regrettable that local governments are being forced to tighten their belts.”
![Fruits are displayed at a traditional market in Suwon, Gyeonggi on July 14. [NEWS1]](https://koreaseafood.online/data/photo/2025/07/15/d1bd4087-49de-4379-aa84-d5f4e3c9c1af.jpg)
Fruits are displayed at a traditional market in Suwon, Gyeonggi on July 14. [NEWS1]
Yangcheon District plans to use 10.8 billion won from its Integrated Fiscal Stabilization Fund to finance its share. The fund is a form of emergency reserve created by pooling surplus revenue and deposits from various accounts and funds.
But some districts don’t even have emergency reserves. Nowon District has already depleted its stabilization fund.
“Since Nowon has a large population, our share of the coupon budget is relatively large, and the impact is significant,” said a Nowon District official. “We currently have zero reserve funds and no clear way to secure financing, so we’ve asked the city government to fully cover the 13.1 billion won using municipal funds.”
“The central government has effectively made it impossible for district offices to issue local bonds, so there’s no way to come up with the 13.1 billion won,” said Nowon District Mayor Oh Seung-rok. “This isn’t an exaggeration — we truly don’t have the money. It feels like the sky is falling down.”
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY MOON HEE-CHUL [[email protected]]
with the Korea JoongAng Daily
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