South Korea's government, ruling Democratic Party and presidential office agreed on a 25 trillion-won supplementary budget to address the Middle East crisis. The bill is set for submission to the National Assembly by end-March and passage on April 10. It aims to ease high oil prices and economic uncertainties.
On March 22 in Seoul, South Korea's government, ruling Democratic Party (DP) and presidential office agreed on a 25 trillion-won (US$16.59 billion) supplementary budget to cushion the Middle East conflict's impact. Senior party spokesperson Rep. Kang Jun-hyun said in a briefing, “The supplementary budget will be around 25 trillion won. The government plans to utilize higher-than-expected tax revenues, without issuing additional government bonds.” The party and government agreed to submit the bill by end-March following President Lee Jae Myung's order. Floor spokesperson Rep. Kim Hyun-jung said the National Assembly aims to pass it at a plenary session on April 10 after standing committee meetings on April 2-3. The budget focuses on easing high global oil prices through energy support, aiding vulnerable groups and businesses affected by rising costs, as U.S.-Israeli strikes on Iran since late February escalated into a broader crisis. Finance Minister Koo Yun-cheol urged at an inter-ministerial meeting, “In addition to the swift formulation and execution of a supplementary budget, we must actively identify and utilize a range of policy tools that do not require budget spending, such as financial, tax and regulatory measures.” He also called for energy supply plans and price stabilization. South Korea, heavily reliant on energy imports, has been preparing measures since late February.
