Some small local governments are distributing livelihood stabilization subsidies to local residents ahead of the Chuseok holiday.

The initiative aims to ease the burden of high inflation on citizens while reviving sluggish local commercial districts by boosting regional consumption.

Sinan-gun, Jeonnam-Gwangju Integrated City, began accepting applications for its livelihood stabilization subsidies starting yesterday through October 16.

Anyone registered as a resident in Sinan-gun as of July 1 is eligible to receive the subsidy, regardless of age or gender.

The support amount is 100,000 won per person.

The subsidy will be provided in the form of a prepaid card.

Gimhae, Gyeongsangnam-do, has also decided to distribute a livelihood recovery subsidy of 100,000 won per person to its citizens.

The application period for Gimhae's livelihood recovery subsidy runs from the 17th of this month to October 30.

Gimhae allocated 54.5 billion won in its budget for the livelihood recovery subsidies.

The recipients include marriage immigrants, permanent residents, recognized refugees, and children born during the application period.

Hampyeong-gun, Jeonnam, is providing 500,000 won per resident in prepaid cards, and Uiryeong-gun, Gyeongnam, is also paying out 500,000 won per person.

Debates continue over the effectiveness of these cash-like subsidies provided by local governments.

Proponents point out that livelihood subsidies distributed in the form of local currency forcibly stimulate intra-regional consumption in the short term, injecting vitality into small business owners and traditional markets while providing breathing room for low-income households.

On the other hand, critics note that because they amount to one-off consumption boosts, their mid- to long-term economic stimulus effects are limited, and differences in whether subsidies are paid and how much is given across local governments can cause a sense of relative deprivation among residents.

In fact, in the case of cities and counties in Gyeongnam province, varying decisions on whether to pay livelihood subsidies based on each local government's financial conditions and policy priorities have led to complaints among local residents.

Criticism has also been raised that because massive budgets are required, financial soundness is undermined as budgets for essential public infrastructure investments—such as roads, welfare, and industry—are cut.

Reported by Kim Jiuk | Video by Jang Yujin | Graphics by Lee Sumin | Produced by SBS Digital News