Party and Government Agree on 25 Trillion Won Supplementary Budget Using Surplus Tax Revenue

"Responding to Soaring Oil Prices Amid Middle East Crisis"

The Democratic Party of Korea and the government have agreed to draw up an additional supplementary budget of approximately 25 trillion won in response to the Middle East war. The funding will be sourced from surplus tax revenue, without the issuance of additional deficit-financing government bonds.

Prime Minister Kim Minseok, Democratic Party Leader Chung Cheongrae, and Presidential Secretary Kang Hoonshik are attending the High-Level Party-Government Consultation held at the National Assembly on the 22nd. Photo by Yonhap News

Kang Junghyun, Chief Spokesperson of the Democratic Party, announced this agreement to reporters following the high-level meeting between the party, the government, and the presidential office held at the National Assembly on the 22nd.

Kang explained that the purpose of this supplementary budget is “to respond to soaring oil prices due to the rapidly changing situation in the Middle East, to stabilize the livelihoods of vulnerable groups directly affected, to minimize industrial damage, and to ensure supply chain stability.”

He added, “The Democratic Party requested the government to swiftly prepare the supplementary budget proposal in order to respond in a timely manner and not miss the golden window of opportunity. The government agreed that prompt and preemptive action is crucial and plans to submit the supplementary budget proposal to the National Assembly as soon as possible.”

He went on to say, “This supplementary budget will be structured using the expected surplus tax revenue, without issuing additional government bonds, in order to minimize any impact on the bond and foreign exchange markets. The scale will be around 25 trillion won.”

Kang also stated, “The party and the government have agreed to prioritize the passage of the supplementary budget bill as soon as it is submitted to the National Assembly, in order to ease the burden on the public as quickly as possible.”

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