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4mo ago

South Korea Approves $9.7 Billion Extra Budget to Boost Economy and Aid Disaster Recovery

The National Assembly passed a revised 13.8 trillion-won budget with bipartisan support, increasing allocations for wildfire relief, infrastructure, and export financing.

Acting president Han Duck-soo gives a speech on the government budget at the National Assembly in Seoul, South Korea, 24 April 2025. JEON HEON-KYUN/Pool via REUTERS
Acting president Han Duck-soo gives a speech on the government budget at the National Assembly in Seoul, South Korea, 24 April 2025. JEON HEON-KYUN/Pool via REUTERS
Acting president Han Duck-soo gives a speech on the government budget at the National Assembly in Seoul, South Korea, 24 April 2025. JEON HEON-KYUN/Pool via REUTERS
The National Assembly in Seoul passes a 13.8 trillion-won (US$9.6 billion) extra budget on May 1, 2025. (Yonhap)

Overview

  • The extra budget, 1.6 trillion won higher than the government's initial proposal, was passed on May 1 after bipartisan negotiations between major political parties.
  • Key allocations include 200 billion won for wildfire-affected areas and discounts on agricultural and marine products, and 400 billion won for local currency vouchers to support small businesses.
  • An additional 800 billion won is designated for infrastructure projects, such as rental housing, roads, and railways, to address the downturn in the construction sector.
  • The government plans to implement a 25 trillion-won financing package for exporters, including 10 trillion won in trade financing and 2.4 trillion won in special trade insurance for SMEs.
  • This supplementary budget is the first of 2025, addressing economic challenges such as weak domestic demand and potential impacts of U.S. tariffs on exports.