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Gov't eyes $6.8 billion additional budget for wildfire recovery and economic support

Published: 08 Apr. 2025, 13:11 Updated: 08 Apr. 2025, 14:43

Finance Minister Choi Sang-mok speaks at at meeting at the government complex in central Seoul on April 8. [NEWS1]

Deputy Prime Minister and Finance Minister Choi Sang-mok announced Tuesday that the government would propose a budget addition of 10 trillion won ($6.8 billion) early next week.

Speaking during an economic ministers’ meeting at the government complex in central Seoul, Choi said the fiscal stimulus would aim to support recovery efforts from recent wildfires and respond to what he described as “unprecedented tariff shocks” affecting Korean industries.

“We cannot stand by while our industries and businesses face serious damage due to these exceptional tariff impacts,” Choi said. “Supporting wildfire recovery and prevention efforts is also a top priority.”

The proposed budget will allocate funding to ensure the rapid restoration of damaged areas and prevent future outbreaks. Choi said the government would secure sufficient resources to begin restoration work as soon as recovery plans are finalized.

“We will also enhance wildfire prevention and response systems by expanding drone surveillance and introducing additional high-performance helicopters,” he said.

The finance minister added that 3 trillion to 4 trillion won would be earmarked to help Korean businesses adjust to rapid changes in global trade conditions and to strengthen the country’s competitiveness in artificial intelligence.

This includes expanding tariff support programs and export vouchers for small- and medium-sized enterprises affected by trade disruptions. Additional emergency financial support will also be offered through policy loans.

To stabilize supply chains, the government plans to introduce new subsidies for investments in high-tech materials, components and equipment. It also aims to expand financial support for reshoring companies and foreign investors operating in Korea.

Another 3 trillion to 4 trillion won will be directed toward boosting domestic consumption and supporting low-income households and small merchants, Choi said.

“We will expand access to low-interest policy loans for small businesses and identify as many programs as possible to strengthen the purchasing power of low-income and vulnerable groups,” he said.

Choi said that the government plans to finalize details of the extra budget proposal later this week in coordination with relevant ministries.

“I sincerely urge the National Assembly to deliberate and pass this extra budget swiftly so we do not miss the golden window to support our industries and businesses,” he said.

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

BY KIM EUN-BIN [[email protected]]