South Korea’s new administration proposed $14.7 billion in additional spending on Thursday to boost weak domestic demand, as President Lee Jae Myung pushes economic recovery as his top priority.
The supplementary budget, totaling 30.5 trillion won ($22 billion), includes 20.2 trillion won ($14.7 billion) in new spending aimed at stimulating growth and supporting vulnerable sectors, according to the finance ministry. It also covers a 10.3 trillion won ($7.4 billion) shortfall in tax revenue.
This second extra budget follows a 13.8 trillion won ($9.9 billion) package passed in May and comes just weeks after Lee’s victory in the 3 June snap presidential election. "The economic downturn is very serious, and it is time for the government to play a role," Lee said.
The Bank of Korea recently cut its 2025 growth forecast to 0.8% from 1.5%, citing uncertainty over U.S. tariffs, and lowered interest rates for the fourth time in the current easing cycle.
A key feature of the new budget is a universal cash handout program worth 10.3 trillion won ($7.4 billion), providing 150,000-500,000 won in vouchers to every citizen. About 84% of recipients will receive 250,000 won (roughly $180).
Additional funds will support the construction sector, artificial intelligence investment, SMEs, and debt restructuring programs for small businesses.
The budget will be partly financed by issuing 19.8 trillion won ($14.3 billion) in new treasury bonds, raising the fiscal deficit to 4.2% of GDP and government debt to 49.0% of GDP.
The government plans to submit the proposal to parliament, led by the ruling Democratic Party, on 23 June.
U.S. efforts to squeeze Iran’s economy through an oil blockade and sanctions are becoming increasingly difficult for Tehran to withstand, acc...
U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citi...
The 83rd Venice Film Festival has opened on the Lido, bringing Hollywood stars and leading filmmakers together for a programme dominated by war, po...
Russian President Vladimir Putin has said that he thinks there is a chance of a peace being reached with Ukraine. He told the Eastern Economic Forum in Vladivostok, Russia that he believed there was "a chance of finding a solution," to the conflict.
The Iranian Health Ministry said at least 18 people were killed and 142 others injured in U.S. airstrikes carried out between 30 August and 2 September.
U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citing an unnamed source. Ukrainian President Volodymyr Zelenskyy has also said American envoys will visit the capitals of both countries.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 3rd of September, covering the latest developments.
The Iranian Army has again struck at U.S. bases in Kuwait and the United Arab Emirates in retaliation for U.S. attacks on southern and western parts of Iran late on Tuesday, which reportedly killed 18 people and injured more than 100 others.
Volkswagen’s supervisory board has approved a major overhaul aimed at cutting 100,000 jobs by 2030 as the German carmaker battles weaker sales, falling profits and intensifying global competition.
Chinese Premier Li Qiang has called on American companies to expand their presence in China and pledged that Beijing would address their "reasonable concerns," as China looks to stabilise trade ties with Washington ahead of President Xi Jinping's planned visit to the U.S. later this month
Apple is entering a new era as Tim Cook steps down as chief executive after 15 years at the helm, handing the technology giant's leadership to longtime executive John Ternus.
Volkswagen is heading towards a decisive showdown with labour representatives as Germany's largest carmaker weighs sweeping restructuring measures that could lead to factory closures and tens of thousands of job losses.
Online fast-fashion retailer Shein is seeking to raise up to $1.77 billion in a Hong Kong IPO after its valuation fell around 70 per cent from its private-market peak four years ago.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment