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Supplementary budget comes late, but lawmakers must not delay further

Published: 16 Apr. 2025, 00:00

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 Monday unveiled a 12 trillion won ($8.7 billion) supplementary budget, adding 2 trillion won to the government’s original proposal. The increased package includes roughly 3 trillion won for wildfire recovery — covering six forest helicopters and 48 multipurpose fire trucks — and earmarks 4 trillion won each for boosting trade and AI competitiveness and supporting small businesses and vulnerable groups.

The proposal comes late. Hopes for an early “cherry blossom” stimulus have faded amid political gridlock. While the ruling and opposition parties held talks on a relief package, they became sidetracked by the impeachment of former President Yoon Suk Yeol. Time was lost. A prompt agreement now could still allow funds to reach the economy by early May.

The Democratic Party has demanded a 15 trillion won package, a step down from its initial 35 trillion won call for a “super budget.” The narrowing gap between parties suggests that a deal is within reach — if the focus stays on practical, timely relief.

Economic indicators leave little room for delay. The Ministry of Economy and Finance reports that fiscal execution through February was the slowest in eight years. Though the government vowed to accelerate spending, only 17.5 percent of the annual budget had been used, down 2.6 percentage points from the previous year.

The labor market is also showing cracks. In the first quarter, employment in retail, hospitality and food services fell by 15,000 compared to the previous year. Hyundai Steel recently began a voluntary retirement program for workers over 50. Even large firms are retrenching.

Externally, U.S. President Donald Trump’s renewed tariff offensive adds pressure on Korea’s export-reliant economy.

Smoke rises from a wildfire on a hillside in Hadong County, South Gyeongsang on April 7. [KOREA FOREST SERVICE]

In this climate, fiscal spending is not just helpful — it is necessary. But stimulus takes time to show results. The optimal moment has passed. The priority now is not expanding the budget for expansion’s sake but securing fast, targeted relief.

The government has taken a step forward by increasing its proposal. The National Assembly must now meet it with urgency, not politics. If resources are directed wisely — toward domestic demand and tariff-hit industries — even 12 trillion won can make a difference.

The clock is ticking. What matters most is speed.

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