The urgent need for a supplementary budget supplants political interests

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The urgent need for a supplementary budget supplants political interests

Published: 01 Apr. 2025, 00:00

Audio report: written by reporters, read by AI

A factory building and materials in the Namhu Agricultural and Industrial Complex in Andong, North Gyeongsang, are seen after being burned by wildfires on March 31. [YONHAP]

An unprecedented disaster has turned the mountains of the Gyeongsang provinces into ashes, yet the political establishment remains fixated on power struggles rather than addressing the crisis. The floor leaders of the rival parties discussed an extra budget to support wildfire recovery efforts on Monday. However, the talks ended without progress, as escalating political strife obstructed any meaningful discussion.

Park Chan-dae, floor leader of the Democratic Party, criticized the government’s proposed 10 trillion won ($6.7 billion) supplementary budget, calling it an “empty husk” that is “woefully insufficient” to revitalize the economy and support people’s livelihoods. Meanwhile, Kweon Seong-dong, floor leader of the People Power Party, argued that the immediate priority should be passing the government’s proposal and then creating a separate discussion framework for additional demands from both parties. While both sides agree on the need for a supplementary budget, their primary focus seems to be on maneuvering for advantage in the deadlocked impeachment trial rather than on disaster relief.

The recent wildfire has been one of the worst in history, burning 48,000 hectares (118,610 acres) — about 80 percent of the footprint of Seoul — and leaving 30 dead and 45 injured. More than 3,600 homes have been reduced to rubble, and around 4,700 people have been displaced. Economic losses are estimated to exceed 2 trillion won. Given these circumstances, it was appropriate for Deputy Prime Minister and Finance Minister Choi Sang-mok to announce on March 30 a 10 trillion won supplementary budget focusing on three key areas: disaster response and recovery, trade and AI competitiveness, and livelihood support.

A golf course in Andong, North Gyeongsang, is seen blackened by wildfires on March 29. [YONHAP]

Urgent action is required. Most of the displaced residents are elderly and need immediate medical and essential supplies. The restoration of devastated areas will demand significant time and financial resources. Additionally, the government must expand trade finance support to prepare for the imminent tariff war triggered by U.S. President Donald Trump. Securing AI competitiveness through large-scale purchases of GPUs is also a pressing issue. Furthermore, small business owners and the self-employed, who are already struggling due to economic stagnation, are in dire need of assistance.

British economic analysis firm Capital Economics recently lowered Korea’s 2024 growth forecast from 1 percent to 0.9 percent. This is the first time a major global institution has projected a growth rate in the 0 percent range for the country. As has been pointed out multiple times, in a multifaceted crisis like this, the top priority must be boosting the economy through government fiscal intervention. Timing is crucial for a supplementary budget — delays will only lead to wasted funds with diminished effectiveness. While the need for an extra budget has been raised since the beginning of the year, the National Assembly has remained unresponsive. With the economy already in turmoil and now facing a major disaster, how long will lawmakers continue to neglect the needs of the people?

Both the ruling and opposition parties must handle the supplementary budget separately from their political agendas and ensure swift approval. The government must also be cooperative and, if necessary, consider increasing the budget beyond 10 trillion won. The passage of the supplementary budget in the April parliamentary session is imperative.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.