In response to the escalating Middle East conflict, the government, the ruling Democratic Party, and the presidential office have reached an agreement to create a supplementary budget of approximately 25 trillion won ($16.59 billion). The aim of this budget is to mitigate the economic consequences of the ongoing crisis, officials announced Sunday.
This decision was the outcome of a high-level consultative meeting held among the three key entities to discuss the specifics of the year’s initial supplementary budget, according to senior party spokesperson Rep. Kang Jun-hyun during a press briefing.
“The proposed supplementary budget will total around 25 trillion won. The government intends to finance this by utilizing higher-than-anticipated tax revenues, thus avoiding the issuance of additional government bonds and minimizing potential disruptions to the foreign exchange market,” Kang stated.
“The Democratic Party has urged the government to expedite the preparation of this budget. Once the bill is officially submitted to the National Assembly, it will be treated as a top priority, with the goal of alleviating the financial strain on the public,” he added.
Previously, both the Democratic Party and the government had concurred on drafting and submitting the budget bill to the National Assembly before the end of March, following directives from President Lee Jae Myung to accelerate preparations to address the repercussions of the current conflict.
According to Rep. Kim Hyun-jung, the ruling party’s floor spokesperson, the National Assembly plans to vote on the bill during a plenary session scheduled for April 10. This will follow relevant standing committee meetings taking place on April 2-3.
The budget will prioritize measures to lessen the impact of high global oil prices through energy price subsidies, provide assistance to vulnerable groups affected by rising living costs, and tackle the challenges faced by businesses. This action comes as the US-Israeli strikes on Iran, which began in late March, have resulted in a widening regional crisis.
“There was also a shared understanding of the necessity to provide more focused support to vulnerable populations and regions through tailored assistance programs,” Kang concluded.
