Busan Allocates KRW 550.8 Billion in Second Supplementary Budget, Focusing on High Oil Price Response and Livelihood Stabilization

Busan City is set to inject additional fiscal resources to ease the burden on citizens caused by high oil prices and to support the recovery of the local economy.

On April 15, Busan City (Mayor Park Hyungjoon) announced that it had submitted its second supplementary budget proposal for 2026 to the city council. The proposed budget stands at KRW 18.7632 trillion, a 3.0% increase from the original budget of KRW 18.2124 trillion. The scale of the supplementary budget is KRW 550.8 billion.

This supplementary budget focuses on proactive fiscal measures to counter the impact of high oil prices resulting from external changes such as the Middle East crisis, and to alleviate the burden on vulnerable groups and the local economy.

The city has allocated KRW 485.3 billion for stabilizing citizens’ livelihoods and revitalizing the local economy. For the freight truck and village bus industries, the city will provide up to KRW 300,000 per vehicle for the purchase of safety operation items such as engine oil. It will also partially subsidize fuel cost increases for coastal fishing vessels and the rise in tax-free fuel prices for agricultural machinery.

Support measures to relieve the burdens on ordinary citizens are also included. The city will allocate KRW 70.5 billion to fund high oil price relief payments, providing between KRW 150,000 and KRW 600,000 to citizens in the bottom 70% income bracket. The budget also includes expanded cashback for Dongbaekjeon, increased commuter buses for industrial complexes, and enhancements to the K-Pass refund rate up to a maximum of 83%, among other transportation and consumption support initiatives.

Support for businesses will also be strengthened. An additional KRW 500 billion in operating funds will be provided to small and medium-sized enterprises, and repayment deadlines for companies with upcoming maturities will be extended. The city will also expand export vouchers and overseas logistics support, as well as offer tailored assistance by sector, such as joint purchasing and stockpiling of raw materials.

In addition, KRW 50 billion has been allocated for essential public expenditures. This includes financial support for Busan Transportation Corporation, contributions to Busan Medical Center, and adjustment grants for autonomous districts and counties.

Mayor Park Hyungjoon stated, "This is an emergency supplementary budget designed to close the gaps left by insufficient national support and to provide customized assistance for businesses," adding, "We will swiftly execute these funds to help the recovery from the impact of high oil prices."

Busan City plans to use this supplementary budget to simultaneously pursue stabilization of citizens’ livelihoods and the strengthening of industrial competitiveness.

Busan City Hall.

원본보기 아이콘

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.