Overview

• The South Korean government has proposed a 12 trillion won supplementary budget, an increase from the initial 10 trillion won plan, to bolster the economy and address urgent challenges.
• The revised budget allocates over 3 trillion won for natural disaster recovery, more than 4 trillion won for trade competitiveness, and another 4 trillion won to support small businesses and vulnerable groups.
• In a significant move, South Korea has increased its semiconductor support package to 33 trillion won, up from the previously announced 26 trillion won, to strengthen its strategic industries.
• The proposal comes as South Korea faces heightened global trade tensions, including a 25 percent tariff imposed by the United States, which has been temporarily paused for 90 days.
• Finance Minister Choi has called for swift bipartisan legislative approval, emphasizing the urgency of implementing these measures to stabilize the economy and enhance industrial resilience.