The South Korean government plans to swiftly prepare a supplementary budget using excess tax revenue to ease livelihood burdens from the Middle East conflict, without issuing additional state bonds. This follows an order from President Lee Jae Myung. The budget will focus on alleviating logistics and fuel costs while supporting low-income households.
On March 13, 2026, the South Korean government announced plans for a supplementary budget to address the fallout from the Middle East conflict, including surging global oil prices. Acting Budget Minister Lim Ki-geun stated during a vice-ministerial interagency meeting that the budget would be drawn up using expected excess tax revenue, without issuing additional government bonds, to minimize impacts on the government bond and foreign exchange markets.
The move comes one day after President Lee Jae Myung ordered prompt preparations for an extra budget to stabilize livelihoods and support economic recovery. The government intends to begin preparations immediately and submit a proposal to the National Assembly at the earliest possible date.
The supplementary budget is expected to prioritize easing burdens on logistics and fuel costs, providing support for low-income households, small merchants, and farmers, as well as aiding exporters facing external shocks. The Ministry of Economy and Finance plans to consult closely with state-run research institutes and experts who have advocated for additional fiscal spending to develop effective measures.
