'Modu Card' refund threshold halved
Expanded legal and tax support for overseas construction
The government approved a supplementary budget to expand public transit fare refunds and establish support for victims of jeonse rental fraud in response to high oil prices and instability in the Middle East.
On April 10, the Ministry of Land, Infrastructure and Transport said the National Assembly plenary approved the First Supplementary Budget for 2026. The package includes KRW 220.4 billion (about $165.3 million) in new spending under the ministry’s jurisdiction, raising its total annual budget from KRW 62.8 trillion (about $47.10 billion) to KRW 63.0 trillion (about $47.25 billion).
The supplement is intended as a proactive response to rising oil prices and growing economic uncertainty tied to Middle East risks, with the goals of restoring household livelihoods and minimizing industry losses.
The largest allocation funds public transit fare refunds, which were increased by KRW 190.4 billion (about $142.8 million). Over the next six months, the government will cut the refund threshold for Modu Card flat-rate products by 50% and raise refund rates for percentage-based products. These changes will be applied retroactively to April usage.
Support for victims of jeonse fraud is a new measure. The government will allocate KRW 27.9 billion (about $20.9 million) to provide a minimum compensation payment that covers any shortfall when post-auction recovery is less than one-third of a tenant’s security deposit.
The package also includes measures for construction and infrastructure. In response to overseas project delays and rising costs linked to the Middle East situation, an additional KRW 400 million (about $300,000) will expand legal and tax assistance for small and mid-sized Korean construction firms working abroad.
Officials also added KRW 130 million (about $97,500) to develop a function within the Construction Industry Information System that allows project owners to pay subcontractors and workers directly, aiming to prevent subcontractor nonpayment and wage arrears.
In aviation, authorities will strengthen carbon-reduction efforts. To prepare for a 2028 mandate on sustainable aviation fuel (SAF), KRW 600 million (about $450,000) will fund the development of a compliance-monitoring system.
The package includes metropolitan transportation measures as well. To address rising travel demand from downtown housing supply expansion, the government added KRW 1.0 billion (about $750,000) for a study to improve the southern and eastern transit systems of the Seoul metropolitan area.
The ministry said it will move quickly to implement the supplementary budget and maximize the effectiveness of these measures, stressing the need to act within the 'golden time' to respond to national crises.
