$6.8 Billion Extra Budget Aimed At Addressing ‘Pressing Issues’: South Korea

(MENAFN- IANS) Seoul, March 31 (IANS) The finance ministry here said on Monday that its proposal of a supplementary budget of 10 trillion won ($6.8 billion) aims to tackle the nation's most "pressing issues" rather than serve as an economic stimulus.

When asked by reporters whether the proposed budget was sufficient to boost the economy, ministry spokesperson Kang Young-kyu emphasised that it is primarily designed to address the most urgent issues, particularly those stemming from the country's worst-ever wildfires, reports Yonhap news agency.

Asia's fourth-largest economy is struggling to cope with the aftermath of wildfires that have ravaged approximately 48,000 hectares of land in the country's southeastern region, leaving at least 30 people dead.

Regarding the exact scale of the damage, Kang said a full assessment would take time.

"The government has determined that this amount is necessary, although it does not mean the budget is fixed at 10 trillion won," Kang added.

According to the Ministry of Economy and Finance, the supplementary budget will also be allocated to disaster response and recovery efforts, trade and artificial intelligence (AI) development, and financial support measures to ease the burden on people's livelihoods.

The proposal comes as South Korea braces for additional U.S. tariffs expected to be announced by President Donald Trump in the coming days, potentially impacting key industries, such as semiconductors and pharmaceuticals, posing further challenges for its export-reliant economy.

Meanwhile, the agriculture ministry also said it will push for support measures for farmers who suffered damage from the wildfires, including free rentals of agricultural machines, and the extension of loans for agricultural and livestock businesses.

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.

"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," said the government.

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