Latest news with #supplementarybudget
Reuters
06-07-2025
- Business
- Reuters
South Korea parliament approves 31.8 trillion won extra budget to bolster economy
SEOUL, July 4 (Reuters) - South Korea's parliament approved a supplementary budget on Friday of 31.8 trillion won ($23.3 billion), supporting President Lee Jae Myung's push to bolster an economy grappling with trade headwinds and tepid consumption. The spending plan that parliament approved is larger than 30.5 trillion won proposed by the government. The government will hold a cabinet meeting on Saturday to adopt the revised budget, the Finance Ministry said. Lee inherited an economy facing weakening demand after months of national turmoil triggered by ousted leader Yoon Suk Yeol's failed martial law decree in December. The economy unexpectedly contracted in the first quarter against the backdrop of U.S. President Donald Trump's sweeping tariffs and is seen expanding a mere 0.8% this year, according to the Bank of Korea. South Korea's government debt will rise to 49.1% of gross domestic product, from 48.4%, and fiscal deficit to 4.2% from 3.3%, as 21.1 trillion won out of the total will be financed by issuing additional bonds. ($1 = 1,362.3000 won)
CNA
26-06-2025
- Business
- CNA
South Korea's Lee Jae-myung urges approval of US$22.4b supplementary budget
South Korean President Lee Jae-myung has called on parliament to swiftly approve a US$22.4 billion supplementary budget aimed at reviving the economy. Seeking support from lawmakers for his first budget proposal, Mr Lee called the situation "desperate" – with stagnant growth, high inflation and difficult times for small businesses. Mr Lee's budget request is expected to pass as his Democratic Party holds a majority in the 300-seat parliament. Lim Yun Suk reports.
CNA
26-06-2025
- Business
- CNA
South Korea's Lee Jae Myung urges approval of US$22.5 billion extra budget
SEOUL: South Korea's President Lee Jae Myung on Thursday (Jun 26) called on parliament to approve a US$22.5 billion supplementary budget aimed at reviving the economy, in his first address to MPs since taking office. Lee was elected in a snap vote this month following the impeachment of his predecessor, Yoon Suk Yeol, over his disastrous martial law declaration in December. The new president's appeal comes as Asia's fourth-largest economy – heavily reliant on exports – reels from steep tariffs imposed by US President Donald Trump. In April, the United States slapped a 25 per cent tariff on South Korean goods as part of Trump's sweeping global trade measures. The rates were later put on a 90-day hold, giving both sides until July to reach a deal. "Timing is everything when it comes to the economy, and now is the time to act," Lee told lawmakers in the main chamber of parliament. "To overcome the downturn and restore livelihoods, we have drafted a supplementary budget totalling 30.5 trillion won," he said, adding the package was designed for swift implementation. More than 40 per cent of the spending would go towards universal consumption coupons, according to the proposal, with individuals eligible for up to 520,000 won (US$380) each. He described the measure as "the minimum" his government could do to breathe life into the economy. Economic growth remained below 1 per cent for four consecutive quarters, before posting negative growth in the first quarter of this year, Lee said. Private consumption and government spending also contracted in the first quarter, he added. Consumer prices rose to 1.9 per cent in May from the year before, official data showed. Lee's request is widely expected to pass, as his centre-left Democratic Party commands a majority in the 300-seat legislature. On North Korea, he reaffirmed his campaign pledge to pursue dialogue with Pyongyang without preconditions, saying peace on the Korean peninsula was key to economic growth. "I will create a virtuous cycle where peace drives economic growth, which in turn further strengthens peace," he said. Lee's tenure begins as South Korea finds itself in the middle of a growing superpower standoff between the United States, its traditional security guarantor, and China, its largest trade partner.
Times of Oman
22-06-2025
- Business
- Times of Oman
South Korea unveils $22 billion stimulus budget to revive Korean economy
Seoul: Lee Jae Myung, President of South Korea, has introduced a 30.5 trillion won ($22.1 billion) supplementary budget proposal aimed at revitalising Korea's flagging economy, reported the Korea Herald, a South Korean English-language daily newspaper, on June 19. The proposal includes a 10.3 trillion won downward revision of projected revenue, the first such adjustment in five years, the South Korean daily reported. "Fiscal soundness and adherence to balanced budgeting are important, but the current downturn is too severe for the government to stand by. It is time to put public finances to use," Lee said at a Cabinet meeting on Thursday, the news platform added. According to the news platform, the president emphasised two guiding priorities in the proposal. "First, stimulating the economy. And second, ensuring the benefits are fairly distributed -- whether universally or partially -- according to who needs them most. These are also questions of values and ideology," he said, quoted by the platform. The plan, which features universal cash payments to all citizens, received Cabinet approval on Thursday and is expected to be submitted to the National Assembly by Monday. According to the Finance Ministry, reported by the Korean Herald, the supplementary budget includes approximately 20.2 trillion won in new expenditure. Of that amount, 15.2 trillion won is directed at spurring economic activity, while 5 trillion won is designated for supporting livelihoods. At the centre of the stimulus package is a 10.3 trillion won cash distribution program issued in the form of "spending coupons." Payments will range from 150,000 won to 500,000 won, scaled by income level. In the first phase, all Koreans will receive a minimum of 150,000 won, while lower-income groups receive more. The second phase will exclude the top 10 per cent of earners, with the remaining 90 per cent receiving an additional 100,000 won. Additionally, 2.7 trillion won has been allocated to support the construction sector, which has experienced four straight quarters of contraction and remains a major drag on domestic demand. About 1.2 trillion will go to support startups and next-generation industries such as artificial intelligence and renewable energy to promote long-term economic development. The 5 trillion won in livelihood support is focused on aiding small business owners and self-employed workers, many of whom are facing record-high loan defaults and business closures. Within this portion, 1.4 trillion won will help alleviate debt for persistently distressed borrowers, while 1.6 trillion won will go toward strengthening the employment safety net, including job-seeking benefits and support for delayed wages. The government has also revised down its revenue forecast by 10.3 trillion won, marking the first such correction since July 2020 at the height of the COVID-19 pandemic, the news platform added. As of the end of April, the integrated fiscal balance -- a key measure of Korea's fiscal health -- recorded a deficit of 46.1 trillion won, the third-largest April shortfall on record, trailing only 2024 and 2020. This gap is set to widen further when factoring in over 30 trillion won in additional spending this year. Revenue for the full year is now projected at 642.4 trillion won, down from 651.6 trillion won, while total government spending has been revised upward from 673.3 trillion won to 702 trillion won. Accordingly, the government anticipates the year-end integrated fiscal deficit will grow to 110.4 trillion won, up from 91.6 trillion won in the previous year. This would raise the deficit-to-GDP ratio to 4.2 per cent, compared to the earlier estimate of 3.3 per cent, the news platform said. The national debt, which stood at about 1,200 trillion won at the end of April, is projected to exceed 1,300 trillion won by year's end, lifting the debt-to-GDP ratio to 49 per cent. According to the South Korean daily, the government also plans to issue 19.8 trillion won in treasury bonds aimed at bridging the fiscal gap, while covering the remainder through approximately 10 trillion won in budget restructuring and the use of available reserves. Despite the expanding deficit, the Finance Ministry emphasised that Korea's fiscal condition remains sustainable by international standards, the English daily added. The government expects the additional budget to lift economic growth by 0.1 to 0.2 percentage points, pushing Korea's growth rate into the 1 percent range. The Bank of Korea currently forecasts 0.8 percent growth for the year, while the International Monetary Fund projects a 1 percent expansion.
Times of Oman
19-06-2025
- Business
- Times of Oman
South Korea approves $14.7 billion second extra budget to boost economy
Seoul: South Korea will implement a second supplementary budget worth 20.2 trillion won ($14.7 billion) aimed at revitalising domestic consumption and bolstering the economy, including the distribution of cash handouts to all citizens. According to South Korea's (Yonhap) News Agency, the Ministry of Economy and Finance said in a statement on Thursday that "the supplementary budget -- the second this year and the first since President Lee Jae Myung took office two weeks ago -- was approved at a Cabinet meeting. It follows a 13.8 trillion-won extra budget passed in May and is subject to parliamentary approval." "The government will support economic revitalization by promoting consumption, encouraging investment and expanding construction spending," the ministry said in a statement. The government will inject 10.3 trillion won to provide "consumption coupons" ranging from 150,000 to 500,000 won per person, depending on income levels, the ministry said. During the January–April period, South Korea's managed fiscal balance, a stricter measure of fiscal health, recorded a deficit of 46.1 trillion won, according to government data. In 2024, the fiscal deficit exceeded 100 trillion won.
