The South Korean government is in the process of formulating a supplementary budget amounting to as much as 20 trillion won, as instructed by President Yoon Suk-yeol. The move comes amidst concerns over high oil prices and inflation, largely exacerbated by the ongoing conflict between the US and Israel against Iran. The situation has led to considerable economic strain on vulnerable groups such as the underprivileged, small business owners, farmers, as well as sectors involved in logistics and distribution. The government aims to alleviate these pressures through timely fiscal measures.

A significant consideration in the formulation of this supplementary budget is the recently implemented ceiling price system for petroleum products, which aims to keep fuel prices manageable by controlling the selling prices set by refining companies. However, this approach also necessitates financial support from the government to cover the potential losses incurred by these companies, making it a crucial variable in determining the final budget size. Officials from the Ministry of Planning and Budget highlighted that the duration of the ceiling price's implementation and the scale of financial support will depend significantly on fluctuations in global oil prices, which remain highly volatile due to geopolitical tensions.

As of now, Brent crude oil prices have surpassed 100 dollars per barrel due to fears of escalating conflict in the Middle East, prompting investment banks to adjust their forecasts upward, predicting prices could reach between 120 and 130 dollars per barrel. Besides the financial support for the ceiling price initiative, the supplementary budget is expected to expand energy vouchers for the economically vulnerable. The government plans to submit the finalized supplementary budget to the National Assembly as soon as possible, potentially by early April, in an effort to mitigate the economic impact of these unprecedented market conditions.