South Korean President: Currently in a "wartime livelihood economy" state, urges prompt passage of supplementary budget proposal
According to a report by Yonhap News Agency, South Korean President Lee Jae-myung mentioned during his policy speech in the National Assembly today (2nd) that the government views the current situation as a "wartime livelihood economy" due to the impact of the Middle East war, and is doing its utmost to break the crisis, hoping that the National Assembly will quickly process a supplementary budget of approximately 26.2 trillion Korean won (about 17.287 billion USD).
Lee Jae-myung stated that the uncertainty in the Middle East situation has negatively impacted the national economy. Previously, the South Korean Kospi index broke through 5,000 points, with impressive performances in industries such as semiconductors and shipbuilding, and the economy once had the opportunity for takeoff, but is now facing an unexpected compound crisis.
He pointed out that disruptions in oil supply have led to a sharp rise in gasoline and diesel prices, and the supply of raw materials such as naphtha and urea has tightened, broadly affecting the livelihood economy. The government, including the Blue House, has activated an "emergency economic response system" and taken various countermeasures, including implementing a cap on oil prices, strengthening the management of naphtha and urea supply, increasing financial support for affected enterprises, and ensuring alternative supply sources.
He stated that considering the need not to miss the "golden time" for economic recovery, the government has prepared the supplementary budget based on the principle of better protecting vulnerable groups. He emphasized that this round of supplementary budget does not require additional issuance of government bonds, but is funded from the excess tax revenue and funds generated by the stock market bull market and the high prosperity of the semiconductor industry, which amount to 25.2 trillion Korean won and 1 trillion Korean won, respectively