Seoul: The government on Sunday proposed a supplementary budget worth at least 10 trillion won (US$6.8 billion) to support the economy hit by political uncertainties and destructive wildfires. In an emergency economic ministers' meeting, Finance Minister Choi Sang-mok emphasized the necessity of this extra budget to tackle the most urgent issues facing the nation.
According to Yonhap News Agency, the Ministry of Economy and Finance outlined that the supplementary budget will be allocated to disaster and accident response, enhancing trade and artificial intelligence (AI) capabilities, and providing financial assistance to citizens. The wildfires, described as the most destructive the country has faced, have been nearly contained but have devastated approximately 48,000 hectares of land, resulting in the loss of at least 30 lives in the southeastern regions.
In addition to post-wildfire recovery, Finance Minister Choi highlighted the need for financial injection to mitigate uncertainties brought about by the Donald Trump administration's tariffs and to compete in the AI industry. Political uncertainties add another layer of complexity, particularly after President Yoon Suk Yeol's brief imposition of martial law on December 3.
Choi stressed the importance of bipartisan support to finalize and present the supplementary budget plan to the National Assembly by the end of the following month. "Given the urgency of efforts to handle wildfire damages, respond to external challenges and stabilize the livelihoods of the people, it is very important for both parties to pass the supplementary budget within April," Choi stated.