Democratic Party of Korea to pass W31tr extra budget bill without opposition
The Democratic Party's floor leader, Rep. Kim Byung-kee, said that his party, which has 56 percent of the National Assembly's seats, could no longer delay passing the supplementary budget bill of 31 trillion won to "support the government's efforts to revive the economy."
The People Power Party opposed the supplementary budget, which includes distributing direct payments of up to 520,000 won in the form of digital vouchers to every South Korean.
The People Power Party said the supplementary budget proposed by the ruling party and President Lee Jae Myung's administration could hurt fiscal sustainability and lead to greater debt.
Explaining his cash handout policy, President Lee said in his press briefing Thursday that for struggling families, the extra income could give them an opportunity to eat out.
"We are one of the world's top 10 economies. I hope people don't have to worry about what to eat," Lee said.
Lee also said universal cash handouts proved effective as an economic stimulus policy during the COVID-19 pandemic.
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Korea Herald
an hour ago
- Korea Herald
Trade minister says S. Korea looks to maximize 'practical interests' in trade talks with US
South Korea's Trade Minister Yeo Han-koo on Saturday stressed Seoul's focus on maximizing "practical interests" in ongoing trade talks with the United States, as he arrived in Washington with just days left before US President Donald Trump's pause on steep tariffs expires. Speaking to the press, Yeo noted that "all possibilities" appear to remain open, saying that the pause on "reciprocal" tariffs could be extended beyond Tuesday, and that the two countries could also reach a broad agreement in principle rather than a full-fledged trade deal. Yeo's arrival came a little over a week after his last trip to the US capital, underscoring the new South Korean government's commitment to striking a trade deal with the Trump administration. He was set to resume talks with US Trade Representative Jamieson Greer on the day. "Even if (the US) unveils a new reciprocal tariff rate for each country, including South Korea, following the expiry of the July 8 pause on the tariffs, we anticipate that there could be a little (additional) period of pause," he told reporters as he walked out of a train station in Washington following his arrival in New York the previous day. "All possibilities remain open," he pointed out, saying that the likelihood of the two sides reaching a deal "in broad terms" cannot be ruled out, though concluding a formal deal on every detail over the next three days appears difficult. "We judge that the current situation is urgent ... In fact, many things are uncertain and fluid at this point," Yeo said. "Through today's negotiations, we want to figure out more details about the US' plan, and will engage in negotiations with a focus on finding ways for us to maximize practical interests." On April 2, Trump announced reciprocal tariffs, including 25 percent duties on South Korea, in a move to match what other countries impose on American goods. The tariffs took effect on April 9, but he paused them for 90 days on the day to allow time for negotiations. Aside from reciprocal tariffs, South Korea is also seeking to minimize the impact of sector-specific tariffs on automobiles, steel and aluminum. "We think that a relatively more difficult area is the sectoral tariff issue given that the US regards it as important from the standpoint of its industrial protection," he said. "But we have repeatedly emphasized that it is crucial (for South Korea) to get exceptions or ensure that the rates are significantly reduced, and we plan to reiterate that again today." Despite uncertainty over the trade negotiations, Yeo painted a positive outlook for the future of bilateral industrial cooperation. "Areas, where chances of mutual cooperation are high, are the artificial intelligence, automobiles, batteries, energy and the bio sector. They are areas where the US needs great cooperation in its efforts to rebuild its manufacturing, and (I) think South Korea has a unique value in those areas," he said. "We seek 'positive-sum' negotiations by putting together issues of industrial and technological cooperation between South Korea and the US for the mid- and long-term period of four to five years alongside tariff talks." Yeo's visit to Washington came as South Korea's National Security Adviser Wi Sung-lac is set to arrive in the US capital on Sunday for a three-day trip in what appears to be a move by President Lee Jae Myung's administration to ensure smooth cooperation between the two allies. On Friday, Trump said he will send letters to 12 countries, which specify their tariff rates, on Monday.
Korea Herald
20 hours ago
- Korea Herald
S. Korea to begin cash handouts to all citizens July 21
South Korea will begin distributing cash handouts to all citizens July 21 as part of a government initiative aimed at stimulating domestic consumption, officials said Saturday. The move follows the Cabinet's approval of a 31.8 trillion-won ($23.3 billion) supplementary budget, passed by the National Assembly on Friday. The handout program is a key part of the first supplementary budget of the Lee Jae Myung administration. Under the plan, all South Korean citizens residing in the country as of June 18 will receive a one-time payment of 150,000 won. The government said the broad disbursement is intended to boost consumer spending nationwide. Additional targeted assistance will be provided based on income levels. Individuals in near-poverty households and single-parent families will receive 300,000 won, while recipients of the basic living allowance will get 400,000 won. To promote balanced regional development, residents outside the greater Seoul area, including Gyeonggi Province and Incheon, will receive an extra 30,000 won. Those living in 84 designated rural and fishing communities facing population decline nationwide will be granted an additional 50,000 won. A second round of payments, scheduled between Sept. 22 and Oct. 31, will provide an additional 100,000 won to the bottom 90 percent of income earners. Eligibility will be determined by a detailed income screening based on national health insurance premiums, with criteria to be announced in September. "We will ensure thorough preparations for the rollout of these payments so that they can serve as a catalyst for economic recovery by boosting consumption and supporting those in need," said Vice Interior Minister Kim Min-jae, who heads the interagency task force overseeing the program.
Korea Herald
a day ago
- Korea Herald
Lee calls for swift execution of T31.8W extra budget to boost economy
President Lee Jae Myung urged the government Saturday to swiftly execute the 31.8 trillion-won (US$23.3 billion) extra budget to help stimulate the sluggish economy amid economic challenges. His remarks came during a Cabinet meeting he presided over to approve the budget, which exceeds the government's initial proposal of 30.5 trillion won. The approval followed the budget's passage by the National Assembly the previous day. "The new government's first supplementary budget was urgently prepared in consideration of the very difficult national economic situation," Lee said during the meeting. "All relevant ministries must do their best to ensure it is executed as quickly as possible so that it can serve as a catalyst to improve people's livelihoods," he added. Of the total, 12.1 trillion won has been allocated for consumption coupons to boost weak domestic demand. Depending on income levels, residents in the Seoul metropolitan area will receive coupons ranging from 150,000 to 500,000 won, those in non-metropolitan areas will receive between 180,000 and 530,000 won, and residents in rural and fishing villages will receive between 200,000 and 550,000 won. The government plans to complete the first round of distribution to all citizens by the end of this month, with an additional 100,000 won to be provided to the bottom 90 percent of income earners within two months.
