Seoul [South Korea], April 2 (ANI): South Korean President Lee Jae Myung on Thursday urged the National Assembly to quickly pass a KRW 26.2 trillion (approximately USD 17.1 billion) supplementary budget to cushion the economic impact of the ongoing conflict in the Middle East, Yonhap News Agency reported.
During the budget address, Lee described the situation as an “unexpected, multifaceted crisis” as the US-led war involving Iran enters its second month, saying extraordinary steps are necessary to stabilise the economy. “The government recognises the current situation as a wartime-level crisis for the people’s economy and is mobilising all available resources to overcome it,” he said, as quoted by Yonhap.
Lee warned that disruptions in global energy supply—particularly amid virtual blockades around the Strait of Hormuz—have pushed up fuel prices and risk shortages of critical industrial inputs such as naphtha and urea, affecting sectors from petrochemicals to fertilisers.
The proposed package would allocate over KRW 10 trillion to offset rising oil costs and KRW 5.1 trillion to sustain a fuel price cap system and secure supplies of key raw materials. The government also plans to strengthen stockpiling and improve transparency in fuel pricing and distribution.
A major component is KRW 4.8 trillion for direct financial support to nearly 35.8 million citizens, mainly the lower 70 percent of income groups, with payments ranging from KRW 100,000 to KRW 600,000 depending on income and region. Lee said the plan aims to protect vulnerable populations and prevent a slowdown in recovery, and would be funded by higher tax revenues from strong stock market performance and the semiconductor industry without issuing new government bonds.
“It is designed to make bold investments where needed in the wake of the Middle East crisis, while ensuring the burden is not passed on to the public or the broader economy,” he said, as quoted by Yonhap.
The ruling party and the main opposition have reportedly agreed to pass the bill by April 10, signalling bipartisan urgency in addressing the economic fallout of the ongoing West Asia conflict. (ANI)
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