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4d ago

South Korea’s Parliament Set to Approve Expanded $9.6 Billion 2025 Budget

Bipartisan agreement increases disaster relief and economic stimulus funding by $1.2 billion beyond the government’s initial proposal.

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 ruling People Power Party and opposition Democratic Party agreed to a 13.8 trillion won supplementary budget during negotiations on May 1.
  • The budget includes 400 billion won for local gift certificates to boost regional economies and 200 billion won for wildfire recovery and agricultural discounts.
  • An additional 800 billion won will fund infrastructure projects like public housing, roads, and railways to address a downturn in the construction sector.
  • Previously cut budgets for prosecutorial special activity expenses and the state audit agency were restored, along with a 115.7 billion won increase for university scholarships.
  • The supplementary budget will be financed through reserves and government bonds, raising South Korea’s debt-to-GDP ratio to approximately 48.4%.