Seoul, March 26 – The ruling Democratic Party (DP) of South Korea and the government have agreed to submit an additional budget bill to the National Assembly next Tuesday, according to the budget minister, in an effort to mitigate the economic impact of a prolonged war in the Middle East on vulnerable sectors.
The additional budget bill, to be submitted on March 31, aims to alleviate the burden of rising oil prices, as well as support small and medium-sized businesses and vulnerable households affected by the prolonged conflict.
"We will first ease the burden on citizens caused by high oil prices and support the smooth implementation of a system to cap oil prices, in order to stabilize domestic fuel prices and reduce fuel costs," said Budget Minister Park Hong-keun during a consultative meeting between government officials and DP lawmakers held at the National Assembly earlier in the day.
The government plans to expand assistance to low-income households, small business owners, and young people, and to "eliminate blind spots" in welfare services to ensure that their daily lives are not affected by high oil prices and inflation resulting from the Middle East conflict.
It also plans to focus the supplementary budget on supporting companies and industries affected by the crisis by helping to stabilize supply chains and advance efforts to transition to a cleaner energy source, Yonhap news agency reported.
"The main opposition People Power Party has proposed delaying a review of the additional budget until mid-April, at a time when a timely response is critical, and this window of opportunity must not be missed," said DP floor leader Han Byung-do, amid criticism from the opposition party that the budget is intended to woo voters ahead of the June 3 local elections.
Han said that the DP and the government will expedite the review of the budget bill in the National Assembly, stressing that there is "absolutely no reason for delay."
South Korean President Lee Jae Myung earlier urged the government to swiftly draw up a supplementary budget, focusing on measures to stabilize the domestic economy, minimize the impact on affected industries, and ensure the resilience of supply chains.