Paju City in Gyeonggi Province is planning to distribute a basic income type of ‘Basic Livelihood Stability Fund’ to its citizens at the beginning of 2026, as a means to promote consumption and stabilize the economy. Each citizen will receive 100,000 KRW in Paju Pay, a local currency. The city has submitted its budget proposal for this initiative to the Paju City Council.
The funds allocated for this project amount to approximately 53.1 billion KRW. The city has stated that securing additional resources, organizing budgets in stages for large-scale projects, and optimizing fund management will prevent adverse impacts on fiscal soundness.
The Ministry of the Interior and Safety’s recent improvements to the ordinary local grant tax system are expected to help reduce the financial burden of the payments, especially because local governments that actively issue local currencies will be able to secure more funds starting from 2027.
Paju City has been communicating the necessity of the fund and seeking cooperation from the city council, presenting it as a collaborative effort between the city and its council.
In the past, Paju City has provided broad-based livelihood support payments to all citizens, such as during the energy stability security crisis at the start of 2023 and again at the beginning of this year to boost the economy. These payments were shown to be effective in reviving difficult livelihoods and stimulating the local economy through various surveys.
Paju Pay, for instance, resulted in a noticeable increase in sales and the number of transactions at affiliated stores. Despite recovery in private consumption, citizens still face economic hardships due to high interest rates, inflation, and employment instability.
The city plans to distribute the ‘Basic Livelihood Stability Fund’ around the Lunar New Year holiday next year, seeing it as an optimal time to quickly stimulate consumption and prevent economic downturns. A detailed payment plan will be developed after the budget passes through the city council.
Mayor Kim Kyung-il emphasized the commitment to prioritizing the livelihood of citizens and ensuring a happy, basic society for all through this initiative.