Seoul, April 2 — South Korean President Lee Jae Myung on Thursday urged the National Assembly to quickly approve a KRW 26.2 trillion (about USD 17.1 billion) supplementary budget to blunt the economic effects of the ongoing Middle East conflict, Yonhap News Agency reported.
Lee described the escalation involving Iran and a US-led coalition as an ‘unexpected, multifaceted crisis’ and said extraordinary measures are needed to stabilise the economy. He warned the government sees the situation as a ‘wartime-level crisis’ for the people’s livelihood and is mobilising all available resources to respond.
Officials say disruptions to global energy supplies, particularly amid virtual blockades around the Strait of Hormuz, have pushed up fuel prices and raised the risk of shortages in key industrial inputs such as naphtha and urea, which are critical for petrochemical and fertiliser production.
The proposed package would devote more than KRW 10 trillion to offset rising oil costs and KRW 5.1 trillion to maintain a fuel price cap system and secure supplies of essential raw materials. The plan also includes measures to strengthen stockpiles and increase transparency in fuel pricing and distribution.
A major element is KRW 4.8 trillion in direct cash support for roughly 35.8 million people, mainly in the lower 70 percent of income earners, with payments ranging from KRW 100,000 to KRW 600,000 depending on income and region. The administration says the payments are intended to protect vulnerable households and sustain the recovery.
Lee added the package would be financed by higher tax revenues from a buoyant stock market and strength in the semiconductor industry, and would avoid issuing new government bonds.
Lawmakers from the ruling party and the main opposition reportedly agreed to fast-track the bill with a target approval by April 10, reflecting bipartisan urgency to address the fallout from the West Asia crisis.
