The South Korean government and ruling party are expediting the establishment of a 25 trillion won supplementary budget to address surging oil prices due to the Middle East crisis.
The South Korean government, in collaboration with the ruling Democratic Party, is moving quickly to implement a supplementary budget amounting to 25 trillion won (approximately 18.5 billion USD) in response to the recent surge in oil prices linked to the ongoing Middle East crisis. This decision was announced during a high-level meeting, where Democratic Party spokesperson Kang Jun-hyun emphasized the need for prompt action to support vulnerable sectors affected by rising costs. The budget aims to stabilize the livelihoods of those directly impacted, minimize industrial damage, and maintain supply chain integrity.
During the meeting, party leaders, including Democratic Party leader Jeong Cheong-rae and Prime Minister Kim Min-seok, discussed strategies to mitigate potential economic fallout. They underlined the importance of timeliness in addressing these challenges, with plans to submit the supplementary budget to the National Assembly by the 10th of next month. Notably, the government intends to utilize expected surplus revenues from corporate and securities transaction taxes, resulting from a robust semiconductor industry and stock market, to fund this initiative without relying on additional national debt.
The government is also preparing to employ a range of policy measures, including budget allocation, tax adjustments, and financial regulations, to help stabilize the economy. Kang reiterated the government’s commitment to quickly process the supplementary budget in the National Assembly to reduce the financial burden on citizens. There is a consensus among party members that targeted support should be provided to vulnerable groups and regions to ensure they receive the necessary assistance amidst the heightened uncertainty caused by geopolitical tensions in the Middle East.
