A senior Cheong Wa Dae official said the government may consider another supplementary budget in the second half if the Middle East crisis persists. Hong Ik-pyo, presidential secretary for political affairs, denied opposition claims that the pending 26.2 trillion-won extra budget seeks political leverage before June 3 local elections. He cited downgraded growth forecasts and rising fuel prices.
Hong Ik-pyo, presidential secretary for political affairs, stated on MBN radio on April 5 that "if the Middle East situation prolongs, we might need an additional supplementary budget in the second half, even after the current extra budget."
He pointed to downward revisions of about 0.4 percentage point in South Korea's growth outlook for this year by domestic and foreign research institutes, along with continued rises in fuel prices despite tax cuts. "We do not know how many more months the war in the Middle East will last, and even after it ends, it will take at least three to four months for supply channels to normalize," Hong added.
Hong denied the main opposition's claim that the 26.2 trillion-won ($17.3 billion) extra budget bill, pending parliamentary review, aims at political leverage ahead of the June 3 local elections.
On U.S. President Donald Trump's calls for allies to assist war efforts against Iran, Hong reiterated a cautious stance. "We remain very cautious," he said. "The United States has not formally requested South Korea deploy troops." He noted diplomatic burdens for any military support, difficulties at the U.N. Security Council due to China and Russia opposition, and limitations under international law.
