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.
Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan all reported blackouts on Friday, which Kazakhstan’...
U.S. President Donald Trump's threats to make the Strait of Hormuz part of U.S. territory have been mocked by Iran's Deputy Foreign Ministe...
At least 20 people have been killed after a magnitude 7.7 earthquake struck off eastern Indonesia early on Saturday, ...
Hundreds of flights have been cancelled or rerouted at Catania Airport over the past week as ash from Mount Etna’s ongoing eruption continues to disrupt air travel in Sicily.
Iran says the Strait of Hormuz remains under its control, rejecting U.S. President Donald Trump’s claim of “total control” over the strategic waterway and insisting it will not reopen until Washington fulfils its commitments under an interim deal.
The U.S. will impose unprecedented measures on Iran in order to economically isolate the country, U.S. Treasury Secretary Scott Bessent has said.
One person has been killed and six others injured after an explosion at a petroleum storage facility at the Port of Rotterdam, prompting an investigation into the cause.
Record rainfall in Japan killed eight people and stranded thousands of travellers at Tokyo's Narita Airport on Friday, as flooding disrupted transport and cut power to 20,000 homes.
Online fast-fashion platform Shein lost a London copyright lawsuit against rival Temu on Thursday over photographs used to promote some products.
Norway’s $2.3 trillion sovereign wealth fund has revealed a 0.05 per cent stake in SpaceX worth $1.22 billion, marking its first reported holding in Elon Musk’s space company.
U.S. data analytics firm Palantir Technologies has reported a 93 per cent year-on-year jump in second-quarter revenue, even as the company faces continued criticism over its work with Israel's military and allegations linking its technology to the war in Gaza.a.
Rising trade across the Caspian Sea is strengthening Georgia’s role as a logistics hub and could help the country develop higher-value industries, according to the Asian Development Bank (ADB).
Ford raised its full-year earnings forecast after reporting stronger-than-expected second-quarter adjusted profit, as resilient demand for its vehicles and operational improvements helped offset tariff-related costs.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment