In South Korea, President Lee Jae-myung's frequent references to a supplementary budget (추경) have led to a growing expectation for its formation in the first half of the year. With the market forecasting an increase in government bond issuance due to the supplementary budget, government bond rates have risen significantly. As of March 6, the 3-year government bond yield climbed to 3.233%, up 0.323 percentage points from January 7, when it was 2.91%. This surge reflects market reactions to anticipated fiscal actions as well as President Lee's focus on different areas that might require funding, such as culture, arts, and startup support.

The Blue House has stated that discussions around the supplementary budget are in a preliminary phase, yet market sentiments are shaped by the ongoing speculation about bond supply. Analysts noted that the inflation of government bond yields was largely due to fiscal signals rather than the actual formation of the budget, indicating increased volatility in the bond markets. Concerns about bond supply and demand are influencing investor behavior, as the likelihood of drafting and the scale of the budget is under scrutiny, especially in light of corporate tax releases expected at the end of March.

The key factor that will influence whether a supplementary budget will yield excess tax revenues is the corporate tax reports from major firms like Samsung Electronics and SK Hynix. Preliminary expectations suggest that corporate tax revenues may exceed the anticipated 86.5477 trillion won, growing from favorable business environments. However, the National Tax Service has adopted a cautious stance, aware that inflated tax revenues might not emerge if challenges like prior-year losses come into play. With the Kospi and Kosdaq indices setting new records daily, a stronger collection of transaction taxes is also expected, suggesting a significant fiscal landscape ahead.