South Korea's National Assembly passed a 26.2 trillion-won ($17.7 billion) extra budget bill on April 10 to address economic fallout from the Middle East conflict, with a 214-11 vote. The ruling Democratic Party and opposition People Power Party agreed to maintain the government's proposed size. About 35.8 million people will receive cash payments ranging from 100,000 to 600,000 won based on income and region.
The National Assembly's plenary session approved the supplementary budget legislation in a 214-11 vote with 19 abstentions out of 244 members present, 10 days after the government submitted it. The ruling Democratic Party (DP) and main opposition People Power Party (PPP) agreed earlier in the day to keep the 26.2 trillion-won ($17.7 billion) size unchanged from the initial proposal.
The bill includes the government's plan to provide cash assistance to the bottom 70 percent of income earners to ease the burden from rising oil prices. With its passage, about 35.8 million people will receive between 100,000 won and 600,000 won per person, differentiated by income level and region. The parties also agreed to allocate an additional 200 billion won for stable naphtha supply, a key petrochemical feedstock.
The extra budget aims to mitigate rising oil prices' impact and protect small businesses and vulnerable households from the Middle East conflict's repercussions. The PPP argued that included projects were inconsistent with the bill's purpose and called for direct aid programs, while the DP urged swift passage.
Cheong Wa Dae expressed gratitude for the bipartisan cooperation. Presidential spokesperson Kang Yu-jung stated in a briefing, "We express our gratitude to the ruling and opposition parties for swiftly passing the bill through bipartisan cooperation that placed national interests first in the face of the crisis caused by the Middle East war." The government plans prompt implementation of measures like naphtha support, public transport discounts, and fuel subsidies for farmers and fishermen.
