Seoul: Finance Minister Choi Sang-mok on Tuesday proposed increasing the size of an envisioned extra budget to 12 trillion won (US$8.43 billion) to support key industrial sectors amid an escalating trade war and respond to a surge in natural disasters. "We plan to draw up a supplementary budget in the 12 trillion-won range, which is about 2 trillion won more than previously proposed, after taking into account various opinions from the National Assembly and media," Finance Minister Choi Sang-mok said during a meeting with economy-related ministers.
According to Yonhap News Agency, the government had earlier proposed the supplementary budget to address what Choi described as the "most pressing issues," including recovery efforts following recent wildfires that devastated southeastern regions of the country. The proposal also comes amid heightened trade tensions, exacerbated by the United States' imposition of reciprocal tariffs, including a 25 percent duty for South Korea.
Choi said the revised budget will focus on three main areas -- disaster and emergency response, strengthening competitiveness in trade and artificial intelligence (AI), and supporting the livelihoods of the public.