South Korea proposes $6.8 billion extra budget to support economy
The government here on Sunday proposed a supplementary budget worth at least 10 trillion won (US$6.8 billion) to support the economy hit by political uncertainties and destructive wildfires.
In an emergency economic ministers' meeting, Finance Minister Choi Sang-mok said the government plans to push for an extra budget of some 10 trillion won, which he said is a "must" to help resolve the most urgent pending issues.
The supplementary budget will be spent to respond to disasters and accidents, strengthen trade and artificial intelligence (AI) capabilities, and provide financial support for people's livelihoods, according to the Ministry of Economy and Finance.
The most destructive wildfires ever to hit the country are almost contained but have burned about 48,000 hectares of land, equivalent to over 2,600 football fields.
At least 30 people have died from wildfires in the southeastern areas of the country.
On top of post-wildfire recovery efforts, the government needs to inject funds to ride out uncertainties triggered by the Donald Trump administration's sweeping tariffs and compete for leadership in the rapidly changing AI industry, said Choi, who is double-hatted as deputy prime minister for economy.
Political uncertainties remain a major uncertainty for the economy following the imposition of short-lived martial law by President Yoon Suk Yeol on December 3.
The government will draw up a detailed supplementary budget plan and submit it to the National Assembly before the end of next month if the ruling and opposition parties offer bipartisan support for the plan, the minister said, according to the report.
"Given the urgency of efforts to handle wildfire damages, respond to external challenges and stabilise the livelihoods of the people, it is very important (for both parties) to pass the supplementary budget within April," Choi added.
