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.
According to Yonhap News Agency, Choi mentioned during a meeting with economy-related ministers that they plan to draw up a supplementary budget in the 12 trillion-won range, which is about 2 trillion won more than previously proposed. This adjustment comes after considering various opinions from the National Assembly and media.
The government had earlier proposed the supplementary budget to address "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 explained that the revised budget will allocate more than 3 trillion won for natural disaster response, over 4 trillion won to address changes in the global trade environment, and another 4 trillion won to support small businesses and vulnerable groups. He also emphasized the need for continued cooperation with the National Assembly, stressing the urgency of the proposal.
"Timing is of the essence when it comes to supplementary budgets," Choi stated, urging bipartisan support for the swift passage of the bill.