The Aryavarth Express
Seoul, April 2:South Korean President Lee Jae Myung on Thursday urged the National Assembly to swiftly approve a supplementary budget of KRW 26.2 trillion (around $17.1 billion) to counter the economic fallout from the ongoing West Asia conflict.
According to reports, Lee described the situation as an “unexpected, multifaceted crisis,” as disruptions linked to the conflict have driven up global energy prices and created supply uncertainties.
He warned that tensions around key routes like the Strait of Hormuz have impacted fuel supplies, leading to rising costs and potential shortages of critical industrial inputs such as naphtha and urea—materials essential for sectors including petrochemicals and fertilisers.
Calling it a “wartime-level crisis” for the economy, Lee Jae Myung said the government is mobilising all available resources to stabilise markets and protect citizens.
Key Highlights of the Proposed Budget
Over KRW 10 trillion allocated to offset rising oil prices
KRW 5.1 trillion earmarked to maintain fuel price caps and ensure supply stability
KRW 4.8 trillion set aside for direct financial support to citizens
The financial aid package is expected to benefit nearly 35.8 million people, primarily targeting lower and middle-income groups. Individual payments are likely to range from KRW 100,000 to KRW 600,000, depending on income levels and regional factors.
The government also plans to enhance stockpiling of essential resources and improve transparency in fuel pricing and distribution systems.
Lee Jae Myung emphasised that the package would be funded through increased tax revenues, supported by strong performance in sectors such as semiconductors and the stock market, without issuing additional government bonds.
The ruling party and opposition are reportedly working towards passing the budget by April 10, reflecting a sense of urgency in addressing the economic impact of the ongoing crisis.
