Seoul: The government will further enhance its push for an extra budget aimed at addressing trade risks and other pending issues surrounding the economy that will include close communication with the National Assembly, the finance minister said Monday. The pledge comes after the U.S. Donald Trump administration announced reciprocal tariffs, including 25 percent duties for South Korea, that are set to go into effect this week.
According to Yonhap News Agency, Finance Minister Choi Sang-mok emphasized the importance of devising support measures for sectors requiring urgent attention while assessing the impact of the reciprocal tariffs on the macroeconomy. He made these remarks during a meeting with ministers of foreign affairs, industry, and trade.
Choi underscored the necessity for "close communication" with the Assembly to formulate a supplementary budget aimed at responding to trade risks. The proposed measures include creating a fund for advanced industries, enhancing competitiveness in artificial intelligence technology, and providing financial support to small businesses, as noted by the finance ministry.
Additionally, Choi mentioned that the government has reviewed its response strategy to the U.S. tariffs in anticipation of the trade minister's planned visit to Washington. The government is also monitoring the reactions of other major economies to these developments.
The government had previously proposed a 10 trillion-won (US$6.8 billion) supplementary budget. Choi stated that this amount was the minimum needed to address the "most pressing issues," which have largely been exacerbated by recent wildfires that devastated the country's southeastern regions.