President Lee Hints at Early Supplementary Budget Amid Middle East Crisis

President Lee Presides Over Cabinet Meeting... "Supplementary Budget Needed for Direct Consumer Support"

"Additional Fiscal Resources Required for Financial and Small Business Support"

Orders Active Review of Differentiated Support Measures to Ease Polarization

Calls for Prompt Implementation of Petroleum Price Ceiling and Fuel Tax Reduction

On USFK Weapons Withdrawal Controversy: "No Obstacle to Deterrence Against North Korea"

On March 10, President Lee Jae-myung stated that "the situation calls for an early supplementary budget" in order to respond to the Middle East crisis. His remarks indicate the need to secure additional fiscal resources to support vulnerable groups and prevent rising oil prices from escalating into a real economic crisis. President Lee also instructed officials to actively consider differentiated support measures to help mitigate polarization.

Early Supplementary Budget Becomes Likely Amid Middle East Crisis

President Lee Jae-myung is presiding over the Cabinet meeting at the Blue House on the 10th. Photo by Yonhap News Agency

Presiding over the Cabinet meeting at the Blue House on this day, President Lee said, "If we are to provide fiscal support or help small business owners, additional financial resources will be needed." In response to President Lee’s call for a supplementary budget, Deputy Prime Minister and Minister of Strategy and Finance Koo Yoon-chul replied, "The current budget is expected to be insufficient." When President Lee further asked, "Isn't it predicted that tax revenue will increase significantly?" Deputy Prime Minister Koo responded, "At an appropriate scale, it seems we could proceed without issuing government bonds."

President Lee remarked, "When production costs rise, the economic burden becomes significant, so fiscal intervention for temporary adjustment is necessary." He pointed out, "In times of crisis, those already struggling are hit harder while upper-income groups tend to benefit more." He continued, "If we reduce the fuel tax across the board, we cannot control this tendency. Instead, by targeting support to low-income or vulnerable consumers equivalent to the reduced fuel tax, we can block or mitigate polarization."

He added, "If possible, I am considering differentiated measures that help alleviate polarization, even with the same budget. Direct support for consumers would require a supplementary budget." He emphasized that direct consumer support is more effective in preventing polarization, but implementing such measures would require substantial resources, making a supplementary budget inevitable.

With President Lee’s remarks, the prospect of an early supplementary budget has become more visible. Earlier this year, President Lee had also hinted at a supplementary budget, citing insufficient support for culture and the arts. However, the Blue House had cautioned against over-interpretation, calling it a "general principle." As the Middle East situation worsened, however, discussions accelerated when Kim Yongbeom, policy chief at the Blue House, stated, "We are now in a situation where we must seriously consider a supplementary budget."

President Lee: "Find Policies That Substantially Ease the Burden on Livelihoods"

President Lee Jae-myung is speaking at the Cabinet meeting held at the Blue House on the 10th. Photo by Yonhap News

He also called for actively identifying and swiftly implementing policies that could substantially ease the burden on people’s livelihoods. President Lee stated, "We must mobilize all national capabilities to minimize the impact of external shocks on livelihoods, the economy, and industry." He added, "Please promptly review additional financial and fiscal support measures, including the implementation of a petroleum price ceiling, adjustments to energy taxes, and direct consumer support." He further noted, "While it is impossible to fully control external factors, we can sufficiently alleviate the pressure on the national economy by effectively utilizing diverse policy tools."

President Lee also reiterated the role of dedicated public officials in overcoming the crisis. He said, "Failing to overcome a crisis when it arises is a sign of incompetence; overcoming crises is expected, but turning them into opportunities is the true skill." He continued, "Just as the saying goes, 'If you can’t avoid it, enjoy it,' we must analyze and accept the current situation with a clear mind, maximize opportunities within it, and thereby move toward a better situation. The role of Cabinet members is more important than ever. If we approach this situation with greater urgency, dedication, and effort than ever before, we can turn the current situation into a better one."

Additionally, he called for accelerating measures to ensure the safety of overseas Korean nationals, including deploying additional chartered flights and utilizing military aircraft. President Lee asked, "Please remain vigilant until every citizen has safely evacuated. Actively consider using chartered and military flights, and move quickly to ensure that our nationals can travel safely by land to neighboring countries."

Regarding the Withdrawal of USFK Air Defense Weapons... Lee: "No Obstacle to Deterrence Against North Korea"

President Lee Jae-myung is listening to Deputy Prime Minister and Minister of Strategy and Finance Koo Yoon-chul's report on the response status regarding the Middle East situation at the State Council meeting held at the Blue House on the 10th. Photo by Yonhap News

Regarding the recent controversy over the partial removal of air defense weapons by US Forces Korea, President Lee said, "The government expects USFK to fully contribute to stability and peace on the Korean Peninsula and has expressed opposition to the removal of certain air defense weapons. However, it is also a reality that not everything can go entirely according to our wishes." Nevertheless, President Lee dismissed concerns by stating, "If you ask whether this causes a serious obstacle to our deterrence strategy against North Korea, I can say it absolutely does not."

He also stressed that South Korea's national defense spending is 1.4 times greater than North Korea's annual gross domestic product (GDP), and that according to international evaluations, its military power ranks fifth in the world—emphasizing that South Korea's conventional warfare capabilities overwhelmingly surpass those of North Korea. President Lee stated, "National defense must be the responsibility of the nation itself," and added, "Rather than relying on external support, we must thoroughly establish independent defense capabilities that allow us to respond on our own, even in the worst-case scenario."

Meanwhile, President Lee issued a stern warning about corporate misconduct, stating, "A company could actually go bankrupt because of this." He said, "If companies engage in collusion, unfair practices, oligopoly, monopoly, or abuse of dominance and cause harm, they will face hefty fines. Moreover, with a 10% whistleblower reward, there will be no way to stop people from reporting such misconduct."

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