Prepaid Card Limit Raised to 3 Million Won... Faster Distribution of COVID Disaster Relief Funds

On the 16th, citizens are receiving consultations regarding Seoul's emergency disaster living expense support related to the novel coronavirus infection (COVID-19) at the Cheongunhyoja-dong Community Service Center in Jongno-gu, Seoul. / Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Hyo-jin] The issuance limit for prepaid card-type subsidies provided by the government or local governments due to national disasters has been expanded from the existing 500,000 won to 3,000,000 won. Accordingly, the distribution of disaster relief funds in response to the spread of the novel coronavirus infection (COVID-19) is expected to proceed more smoothly.

The Financial Services Commission announced on the 21st that the amendment to the Enforcement Decree of the Specialized Credit Finance Business Act containing this content was approved at the Cabinet meeting. The expanded issuance limit will be applied temporarily until September 30.

The government is promoting the introduction of 'Emergency Disaster Relief Funds' to guarantee the livelihood of citizens facing difficulties such as income and sales decline due to the spread of COVID-19 and to revitalize domestic demand through consumption stimulation.

Some local governments, including Gyeonggi-do, are providing subsidies in various forms such as credit card points, prepaid cards, and local gift certificates to revitalize the depressed local economy.

The government and local governments are promoting the distribution of disaster relief funds, including methods using prepaid cards for quick and efficient payment of subsidies. However, as demand for prepaid card production has concentrated, it takes considerable time to produce cards in large quantities, raising concerns that timely support may be hindered.

In cases where subsidies for multiple household members are combined or subsidies from metropolitan and basic local governments are aggregated, the subsidy amount may exceed the existing issuance limit of prepaid cards, requiring the subsidy to be split and paid with multiple prepaid cards.

Before the amendment, the Specialized Credit Finance Business Act limited the issuance of anonymous prepaid cards to 500,000 won to minimize damage in case of loss and prevent crime.

The government decided to expand the issuance limit of prepaid cards for disaster relief funds by collecting suggestions from local governments centered on the Central Disaster and Safety Countermeasures Headquarters meeting. The Financial Services Commission expects that this legal amendment will enable faster and more efficient distribution of emergency disaster relief funds currently being promoted by the government, as well as by some local governments.

This content was produced with the assistance of AI translation services.