By Reagan Steele – Business & Economic Policy Writer

In a move drawing comparisons to the economic stimulus policies seen across the globe during the COVID-19 pandemic, South Korea has announced a nationwide cash handout program aimed at jumpstarting domestic consumption.

The program, part of a 31.8 trillion-won ($23.3 billion) supplementary budget passed by the National Assembly, will deliver “consumption coupons” of up to 400,000 won (roughly $290) to residents depending on income level and family situation. According to South Korea’s Interior Ministry, the initiative will begin July 21 and run through September 12, with a second round of payments scheduled for later in the year.

While Korean officials frame the effort as a short-term boost to the economy, some economists have raised concerns over long-term inflationary effects and fiscal stability. The country’s Finance Ministry has acknowledged that the program will be debt-financed, pushing the projected deficit to 4.2% of GDP and national debt to nearly 50%.

Observers in the U.S. may find the program familiar. In the wake of COVID-19, both the federal government and states like California implemented massive direct-payment programs. Though credited with shoring up immediate household spending, those policies have also been blamed for fueling inflation, which has proven stubborn and far-reaching. California, in particular, now faces steep deficits after years of aggressive social spending, including direct cash transfers and expanded safety net programs.

At a glance, South Korea’s latest program appears to follow the same playbook: debt-driven cash infusions, short-term economic hopes, and longer-term fiscal questions.

Whether the Korean initiative succeeds—or whether it repeats some of the economic challenges seen in the U.S.—remains to be seen. But for many Californians still grappling with high prices and reduced purchasing power, the story may sound all too familiar.