South Korea Rushes Extra Budget to Counter War's Economic Shock

The extra budget bill, to be submitted March 31, seeks to ease the burden of rising oil prices, as well as support small and midsized firms and vulnerable households hit by the prolonged war.

"We will first ease the burden on citizens caused by high oil prices and support the smooth implementation of an oil price cap system to stabilise domestic fuel prices and reduce fuel costs," Budget Minister Park Hong-keun said during a consultative meeting between government officials and DP lawmakers held at the National Assembly earlier in the day.

The government will expand assistance to support low-income households, small business owners and the youth, and seek to "eliminate blind spots" in welfare services to ensure that their daily lives are not affected by the high oil prices and inflation from the Middle East conflict.

It also plans to concentrate the supplementary budget on supporting companies and industries affected by the crisis by helping stabilise supply chains and pushing forward with energy transition efforts, Yonhap news agency reported.

"The main opposition People Power Party has proposed delaying a review of the extra budget until mid-April at a time when a timely response is critical and this golden hour must not be missed," DP floor leader Han Byung-do said amid criticism from the opposition party that the budget is intended to woo voters ahead of the June 3 local elections.

Han said the DP and the government will accelerate the review of the budget bill in the National Assembly, stressing there is "absolutely no reason for delay."

South Korean President Lee Jae Myung earlier urged the government to swiftly draw up a supplementary budget, focusing on measures to stabilise the domestic economy, minimise the impact on affected industries and ensure the resilience of supply chains.

- IANS