Opposition leader Lee Jae-myung has criticized the government’s high fuel price compensation fund, pointing out that gas stations with annual sales under 3 billion won cannot utilize it effectively. He called for a review to ease the sales threshold criteria.
Distribution Hurdles for Small Stations
The program ties subsidies to a minimum annual sales volume of 3 billion won, excluding smaller outlets. This leaves a significant portion of the fund undistributed, as many stations struggle to meet the requirement. Lee emphasized that operators face challenges selling the subsidized fuel, leading to widespread issues in regions like Seoul and Gyeonggi.
In a recent KBS radio appearance, Lee stated, “Even if the high fuel price compensation fund targets 3 billion won in sales, it cannot be implemented that way, causing suffering in Seoul and Gyeonggi areas.” He added, “Most sales exceed that level, which is why gas stations cannot accept it.”
Presidential Response and Industry Stats
The President directed senior aides on the previous day to “review the quantitative conditions once.” This followed reports of base-level dissatisfaction during internal meetings, where questions arose about tying aid to direct citizen benefits versus job creation initiatives.
Lee advised, “Even if it’s for creating jobs, citizens should receive it directly. Otherwise, direct it broadly once by easing the criteria.”
Nationwide, out of approximately 10,000 gas stations, 36% report annual sales below 3 billion won, according to the Korea Gas Station Association. The initial subsidy issuance on the 27th was largely returned due to implementation mismatches.
Calls for Policy Adjustments
Presidential office officials acknowledged the program’s name but highlighted sales barriers at smaller stations. One related party noted, “There is a perception issue since 3 billion won worth cannot be handled at these outlets. Easing it could address responses.”
They further explained, “If pressure exists, even without direct involvement, review easing the criteria directionally once. It’s not yet finalized; it’s at the stage of gathering opinions.”
