Yoon Administration's First Supplementary Budget to Be Announced This Week... Focus on Mid-30 Trillion Won 'Loss Compensation'

President-elect Yoon Suk-yeol is attending the Buddha's Birthday ceremony for the year 2566 (2022) held at Jogyesa Temple in Jongno-gu, Seoul on the 8th, and is having a conversation with Wonhaeng, the Chief Executive Monk of the Jogye Order. Photo by Transition Team Press Corps

[Asia Economy Reporter Baek Kyunghwan] The Yoon Suk-yeol administration is expected to announce a supplementary budget (supplementary budget) focused on loss compensation for small business owners this week. As the first supplementary budget of the new government, it is likely to be organized in the mid-30 trillion won range.

According to the Presidential Transition Committee (Transition Committee) on the 8th, the Ministry of Economy and Finance will announce the second supplementary budget in the latter half of this week after President-elect Yoon Suk-yeol's inauguration. Earlier, Deputy Prime Minister and Minister of Economy and Finance nominee Choo Kyung-ho mentioned in his confirmation hearing response that "the supplementary budget is planned to be announced as soon as possible after the new government takes office."

The first supplementary budget of the Yoon administration is expected to focus on "full loss compensation for small business owners." The scale is 34 trillion to 36 trillion won, and the Transition Committee has stated that based on Yoon's campaign pledge to inject 50 trillion won in fiscal funds, support exceeding 33.1 trillion won will be provided to small business owners, excluding the first supplementary budget (16.9 trillion won).

The support funds are likely to be provided by paying the amount calculated by subtracting already paid support and compensation from the estimated loss amount of each small business owner. For small business owners with heavy debts, measures such as converting high-interest loans from secondary financial institutions to bank loans to reduce interest burdens, as well as debt restructuring where the Korea Asset Management Corporation (KAMCO) purchases and manages bonds for debts they cannot repay, are expected to be implemented.

In addition, support measures are reportedly being considered to provide 500,000 to 1.5 million won worth of support funds to vulnerable groups such as corporate taxi and bus drivers, and cash consumption coupons to low-income households as part of livelihood stabilization measures.

According to the Transition Committee, the funding will be secured by mobilizing available resources to the maximum extent without burdening the fiscal structure, such as through expenditure restructuring and global surplus funds. High-intensity expenditure restructuring as well as the use of surplus funds from funds are planned.

This content was produced with the assistance of AI translation services.