Paju City to Distribute 'Basic Livelihood Stabilization Grant' in 2026... Economic Boost Expected

53.1 Billion Won Allocated, 100,000 Won per Resident to Be Distributed via Paju Pay
Leading a "Basic Society for Citizen Happiness" with the Basic Livelihood Stabilization Grant
Budget Proposal Submitted to City Council; Approval Expected Following Preliminary Briefing

Paju City in Gyeonggi Province is planning to distribute a basic income-type "Basic Livelihood Stabilization Grant," providing 100,000 won per resident in the form of the local currency, Paju Pay, at the beginning of 2026 to boost consumption and stabilize livelihoods. To this end, the city announced that on November 20, it submitted a budget proposal for the grant to the Paju City Council.

Paju City Hall exterior. Provided by Paju City

The total project budget allocated for this "Basic Livelihood Stabilization Grant," which targets all Paju residents, is approximately 53.1 billion won. The city explained that it has secured funding through additional acquisition of transfer resources such as local allocation tax, phased budgeting for large-scale projects, and improved fund management efficiency, so there are no concerns about negative impacts on fiscal soundness.

Meanwhile, the "2026 General Grant Improvement Plan" announced by the Ministry of the Interior and Safety's Local Allocation Tax Committee at the end of October is also expected to significantly help reduce the fiscal burden of providing the Basic Livelihood Stabilization Grant. Starting in 2027, 10% of local government spending on issuing local currency will be reflected in the demand for general grants, allowing local governments that actively issue local currency to secure more resources.

Given the large budget required for this initiative, the city is making considerable efforts to persuade the city council and seek its understanding and cooperation.

On October 16, immediately after the first plenary session of the 259th Paju City Council extraordinary session, the city shared the "Basic Livelihood Stabilization Grant Payment Plan (Draft)" with city council members from the relevant standing committees-the Autonomy Administration Committee and the Urban Industry Committee. By explaining the necessity of providing the grant at this time and the importance of budget allocation, the city is working to make this budget proposal a product of cooperation between the city government and the city council.

In early 2023, during the so-called "heating crisis," Paju City provided an emergency energy stabilization grant to all households, and at the beginning of this year, it also distributed a "Livelihood Recovery Stabilization Grant" to all Paju residents. The city has consistently implemented universal grant policies to revitalize livelihoods. The effectiveness of these emergency grants, proposed as immediate measures to support struggling livelihoods and stimulate the local economy, has been demonstrated by various surveys.

For example, the "Livelihood Recovery Stabilization Grant" distributed via Paju Pay at the beginning of this year, which expired at the end of June, clearly showed its impact when comparing the total sales at Paju Pay-affiliated stores during the same period in 2024. Total sales at affiliated stores increased by 74.2% in the first half of the year, average monthly sales rose by 65.3%, and the number of Paju Pay transactions surged by 82%.

Following the government's distribution of livelihood recovery consumption coupons, the consumer sentiment index reached its highest level since 2021, and domestic demand has gradually improved, supported by the recovery in private consumption. However, citizens' perceived economic conditions have yet to recover due to persistently high interest rates, high inflation, and job insecurity, and small business owners and the self-employed continue to face difficulties.

The city believes that providing grants that can be used immediately is effective in rapidly stimulating consumption and preventing contraction of the local economy under these circumstances. Accordingly, the city considers the period around the Lunar New Year next year as the optimal time to distribute the "Basic Livelihood Stabilization Grant" to sustain and expand the positive effects of the government's livelihood recovery consumption coupons. Detailed payment plans will be established after the budget proposal passes the city council.

Paju Mayor Kim Kyoungil stated, "Through the basic income-type 'Basic Livelihood Stabilization Grant,' we will continue to prioritize the livelihood economy in 2026, realize a leading basic society city where all Paju citizens can be happy, and firmly guarantee the basic lives of our citizens."

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