Seoul Allocates 1.4 Trillion Won Supplementary Budget... Expands Public Transport Discounts and Emergency Aid for Crisis Households

by Bae Kyunghwan

Published 14 Apr.2026 10:00(KST)

Supplementary Budget Accounts for 2.8% of Original Budget, Submitted to City Council on April 15

Support for Small Businesses and Exporters, Protection for Vulnerable Groups

Climate Companion Card and K-Pass Discounts, Expanded Public Transport Assistance

High Oil Price Relief Fund: City Addresses Gaps Left by Central Government

Seoul Metropolitan Government has established a supplementary budget of 1.4 trillion won to respond to the livelihood crisis caused by instability in the Middle East. The main measures include supporting public transportation usage-such as halving the price of the Climate Companion Card-to address high oil prices, and providing relief funds to vulnerable groups. The city will also strengthen care support in various sectors, such as raising the emergency assistance unit price for crisis households and expanding basic welfare coverage for low-income individuals who are not eligible for national benefits.

On April 14, Seoul Metropolitan Government announced that it had drawn up the ‘First Supplementary Budget Proposal for 2026’ reflecting these measures, and requested a review by the Seoul Metropolitan Council. The size of the supplementary budget is 1.457 trillion won, equivalent to 2.8% of the original budget of 51.4857 trillion won. If the proposal passes as is, Seoul’s total budget for this year will be 52.9427 trillion won.

2026 Seoul Metropolitan Government 1st Supplementary Budget Main Project Expense Allocation Details. Seoul Metropolitan Government

The key elements of this supplementary budget include: ▲ Strengthening resilience against high oil prices (497.6 billion won) ▲ Targeted support for affected groups (120.2 billion won) ▲ Matching support for government relief payments for high oil prices (152.9 billion won) ▲ Support for local districts (353 billion won).

First, to reduce household burdens and promote public transportation usage, transportation subsidies will be greatly expanded. The Climate Companion Card will offer a 30,000 won payback, allowing users to pay a half-price rate of 30,000 won per month for three months. The discount and refund rate for the K-Pass will also be increased. Additionally, 200 billion won will be provided to subway and city bus operators to improve public transport services, with 100 billion won allocated each to Seoul Metro and city buses to reduce their financial burden.

The number of subsidies for eco-friendly vehicles will also be increased. 11.7 billion won will be invested to expand the supply of hydrogen buses, and 16.4 billion won will be allocated to increase the number of electric buses and trucks. As a result, the number of electric city and village buses is expected to rise from the current 70 to 376, and electric trucks from 1,779 to 2,337.

Funding support for small business owners in crisis will be increased to 3 trillion won. This includes: ▲ Support for small business owners facing management difficulties-such as no guarantee fees, no collateral, and no in-person visits (23.4 billion won) ▲ Expansion of the issuance of Seoul Love Gift Certificates (15.5 billion won) ▲ Support for traditional market events (1.3 billion won) ▲ Expansion of the designation and development support for alley-type shopping districts (1.2 billion won) ▲ Fuel subsidies (36 billion won).

Direct support will also be provided to exporting companies affected by the closure of the Strait of Hormuz. For companies exporting to the Middle East and North Africa that experience increased costs-such as return shipments or surcharges due to transportation disruptions-a maximum of 30 million won per company will be provided as emergency support. For companies exporting to 21 countries in the Middle East and North Africa, export insurance, guarantee fee support, and accounts receivable insurance premiums for companies suffering uncollected payments will also be offered.

Additional protection measures will be implemented for low-income groups facing a surge in living costs and for citizens in need of care. Key measures include raising the emergency assistance unit price for crisis households and expanding basic welfare coverage for low-income individuals not receiving national benefits. These include: ▲ Increasing the emergency welfare support unit price for those at or below 100% of the median income (1.1 billion won) ▲ Rapid emergency welfare support for low-income groups at or below 75% of the median income (3.1 billion won) ▲ Strengthening minimum living guarantees for low-income individuals not receiving public assistance (5.6 billion won) ▲ Operation of the Care SOS service (1.9 billion won).

The entire matching portion of 152.9 billion won for the government’s ‘high oil price relief payment’ has also been allocated. Currently, despite Seoul being a non-allocation local government, the central government subsidy rate is set at only 70%-the lowest nationwide (other regions: 80%)-amounting to discriminatory treatment. Despite the continuation of structural unfairness, such as unilateral project decisions by the central government, the city has prioritized alleviating citizens’ difficulties by fully allocating the matching portion from the city’s budget. The total relief fund of 152.9 billion won will be distributed in two phases: in the first phase, 550,000 won will be provided to basic livelihood security recipients and 450,000 won to the next-lowest income group and single-parent families; in the second phase, 100,000 won will be provided to citizens in the bottom 70% income bracket, excluding the first phase recipients.

In addition, 353 billion won in adjustment grants will be provided to help local districts respond to urgent livelihood issues. Normally, adjustment grants are reflected in the supplementary budget based on the previous year’s settlement results, but considering the severity of the economic crisis, part of the grant will be provided preemptively.

Dongryul Lee, acting chief of policy planning at Seoul Metropolitan Government, stated, “The goal of this supplementary budget is to address the immediate crisis while also laying the foundation for a transition beyond the crisis. Under the principle that measures not felt on the ground are meaningless, we will promptly execute the budget upon council approval and devote all our efforts to protecting citizens’ livelihoods.”

2026 Seoul City Budget Proposal. Seoul City