President Lee Hints at Early Supplementary Budget Amid Middle East Crisis (Comprehensive)

President Lee Presides Over Cabinet Meeting: "Extra Budget Needed for Direct Consumer Support"

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

Orders Active Review of Differentiated Measures to Alleviate Polarization

Calls for Swift Implementation of Petroleum Price Ceiling and Fuel Tax Cuts

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

48 Items Approved, Including 33 Promulgated Bills and 2 Legislative Bills

On March 10, President Lee Jae-myung stated that "it may be necessary to enact an additional supplementary budget (extra budget) as soon as possible" in response to the Middle East crisis. This implies that it is necessary to secure more fiscal resources to support vulnerable groups in order to prevent the rise in oil prices from escalating into a real economic crisis. President Lee also instructed officials to actively consider differentiated support measures to help alleviate polarization.

Early Supplementary Budget for Middle East Crisis Becomes More Likely

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

Presiding over a Cabinet meeting at the Blue House that day, President Lee said, "Isn't additional fiscal support needed if we are to assist small business owners or provide fiscal support?" In response to President Lee's call for an extra budget, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol replied, "It is expected that the existing budget will be somewhat insufficient." When President Lee asked again, "Isn't it predicted that tax revenue will increase significantly?" Deputy Prime Minister Koo explained, "With an appropriate scale, it seems possible to proceed without issuing government bonds."

President Lee pointed out, "If production costs rise, the economic burden will be significant, so it is necessary to inject fiscal resources for temporary adjustments," adding, "In crisis situations, those who are struggling become even more vulnerable, while those in the upper class tend to benefit more." He continued, "If we uniformly reduce the fuel tax, we cannot control this trend. Instead, by targeting support for low-income or vulnerable consumer groups using the same resources as a fuel tax cut, we can prevent or mitigate polarization."

He further elaborated, "If possible, I am thinking that it would be better to use the same resources in a way that helps alleviate polarization, by applying them differentially. To directly support consumers, an extra budget is necessary." This suggests that directly supporting consumers is more effective in preventing polarization, but implementing this approach would require significant resources, making a supplementary budget inevitable.

President Lee's remarks have made the early enactment of a supplementary budget even more likely. Earlier this year, President Lee had hinted at a possible extra budget, criticizing insufficient support for culture and the arts. However, the Blue House had previously cautioned against overinterpreting the comments, describing them as "general in nature." But as the Middle East situation has worsened, Blue House policy chief Kim Yong-beom said, "It is a situation where we must seriously consider (an extra budget)," accelerating the discussion.

President Lee: "Develop Policies That Substantially Ease the Burden on People's Lives"

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 the prompt identification and implementation of policies that can substantially reduce burdens on people's livelihoods. "All national capabilities must be mobilized to minimize the impact of external shocks on people's lives and the economic industry," President Lee said. "Please also quickly consider additional financial and fiscal support, including the implementation of a petroleum price ceiling system, adjustments to energy taxes, and direct consumer support." He added, "Although it is difficult to perfectly control external factors, if we effectively use various policy measures, we can sufficiently reduce the pressure on the national economy."

He again emphasized the important role of dedicated public officials in overcoming crises. "It is incompetent not to overcome a crisis when it arises," President Lee said. "Overcoming a crisis is a given; turning it into an opportunity is true capability." He continued, "As the saying goes, 'If you can't avoid it, enjoy it,' we must calmly analyze and accept the current situation, and by maximizing opportunities within it, we can move toward a better outcome. The role of Cabinet members is more important than ever. If you face the current situation more urgently, faithfully, and do your best than ever before, you can turn things for the better."

Additionally, he called for speeding up measures to ensure the safety of overseas Korean nationals, including the deployment of additional chartered flights and the use of military aircraft. President Lee ordered, "Do not let your guard down until every single citizen is safely evacuated," and "Actively review the use of chartered and military aircraft, and hurry to ensure that (overseas Koreans) can move safely to neighboring countries by land."

President Lee: "No Hindrance to Deterrence Against North Korea Despite USFK Air Defense Asset Withdrawal"

President Lee Jae-myung is listening to a report on the Middle East situation from Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol during a cabinet meeting held at the Blue House on the 10th. Photo by Yonhap News Agency

Regarding the recent controversy over the withdrawal of some US Forces Korea (USFK) air defense assets overseas, President Lee said, "The government expects USFK to fully contribute to stability and peace on the Korean Peninsula, and we have expressed opposition to the withdrawal of some air defense assets." However, he also stated, "It is a reality that we cannot make everything go exactly as we wish." Still, President Lee dismissed concerns by saying, "If you ask whether this will cause a serious hindrance to our deterrence strategy against North Korea, I can say with certainty that it will not."

President Lee also emphasized that South Korea's defense spending is 1.4 times greater than North Korea's annual GDP, and that international organizations rate South Korea's military power as fifth in the world, meaning its conventional warfare capabilities far surpass those of North Korea. "National defense is the responsibility of a nation itself," he said, adding, "Rather than relying on external support, we must be fully prepared to respond independently even in the worst-case scenario."

Meanwhile, President Lee warned companies about dishonest practices, saying, "A company could actually go bankrupt." He stated, "If companies cause damage through collusion, unfair practices, oligopoly, monopoly, or abuse of dominant position, enormous fines will be imposed. On top of that, if a 10% reward is given, it will be impossible to prevent whistleblowing." After receiving a report on expanding support for menstrual products, President Lee noted that there are likely to be many cases of excessive price increases due to abuse of monopoly or dominant market positions, and instructed each ministry to pay special attention and conduct inspections. He particularly emphasized that for items essential to people's daily lives, the state must guarantee at least a minimum standard.

Regarding preparation and implementation of the revised Trade Union Act, President Lee said the government should serve as a model employer. He referred to recent violations reported in the media, asking relevant ministries to issue necessary recommendations or standards to prevent such cases from recurring. President Lee also stressed the need for the public sector to avoid becoming "bureaucratized" in order to achieve maximum results, adding, "Above all, even in hierarchical relationships, horizontal communication is important."

At the Cabinet meeting that day, a total of 50 items were submitted, including 33 bills for promulgation, 2 bills, 13 presidential decrees, and 2 general agenda items. Of these, 48 items were approved, except for the partial amendments to the Civil Servant Appointment Decree and the Local Civil Servant Appointment Decree. Blue House spokesperson Kang Yoo-jung explained at a briefing that, regarding the two deferred amendment decrees, "While maintaining the effectiveness of providing fair compensation to public officials who have devoted themselves on the front lines of disaster and safety, we decided to review more detailed standards and operational plans to ensure that the system does not become formalistic or deviate from its original intent, and to discuss it again later."

The agenda items approved that day also included 21 bills related to national policy tasks, such as amendments to the Employment Insurance Act and the Gender Equality in Employment Act to strengthen support for work-life balance by granting paid leave in cases of spouse's miscarriage or stillbirth, and an amendment to the Retirement Benefits Act to expand the coverage of the Small and Medium Business Retirement Pension Fund System, thereby supporting the old-age income security of workers at medium-sized enterprises.

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