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Korea's finance minister proposes increasing extra budget to 12 trillion won

Published: 15 Apr. 2025, 10:34 Updated: 15 Apr. 2025, 14:35

Finance Minister Choi Sang-mok speaks during a meeting with economy-related ministers at the government complex in Seoul on April 15. [YONHAP]

Finance Minister Choi Sang-mok on Tuesday proposed increasing the size of an envisioned extra budget to 12 trillion won ($8.43 billion) to support key industrial sectors amid an escalating trade war and respond to a surge in natural disasters.

"We plan to draw up a supplementary budget in the 12 trillion-won range, which is about 2 trillion won more than previously proposed, after taking into account various opinions from the National Assembly and media," Choi said during a meeting with economy-related ministers.

The government had earlier proposed the supplementary budget to address what Choi described as the "most pressing issues," including recovery efforts following recent wildfires that devastated southeastern regions of the country.

The proposal also comes amid heightened trade tensions, exacerbated by the United States' imposition of reciprocal tariffs, including a 25 percent duty for Korea.

Choi said the revised budget will allocate more than 3 trillion won for natural disaster response, more than 4 trillion won to address changes in the global trade environment and another 4 trillion won to support small businesses and vulnerable groups.

He also underscored the need for continued cooperation with the National Assembly, highlighting the urgency of the proposal.

"Timing is of the essence when it comes to supplementary budgets," Choi said, urging bipartisan support for the swift passage of the bill.

Yonhap