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.
Russian President Vladimir Putin has accused European countries of taking grain originally meant for impoverished nations under the 2022 Black Sea Gra...
The UK and Germany have signed a landmark treaty that includes plans for a direct rail connection between London and Berlin, aimed at boosting travel ...
A tenth resident has died following the deadly fire that tore through the Gabriel House assisted-living facility in Fall River, Massachusetts, officia...
At least 63 people have died and 290 were injured in Pakistan’s Punjab province within 24 hours of heavy monsoon rains, authorities said Thursday....
President Ersin Tatar of the Turkish Republic of Northern Cyprus said formal negotiations on the island’s future will not resume unless Turkish Cypr...
Russian President Vladimir Putin has accused European countries of taking grain originally meant for impoverished nations under the 2022 Black Sea Grain Initiative.
The UK and Germany have signed a landmark treaty that includes plans for a direct rail connection between London and Berlin, aimed at boosting travel and trade between the two countries.
A tenth resident has died following the deadly fire that tore through the Gabriel House assisted-living facility in Fall River, Massachusetts, officials confirmed Thursday.
At least 63 people have died and 290 were injured in Pakistan’s Punjab province within 24 hours of heavy monsoon rains, authorities said Thursday.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
China and the Association of Southeast Asian Nations will send an upgraded ‘version 3.0’ free-trade agreement to their heads of government for approval in October, Chinese Foreign Minister Wang Yi said on Saturday after regional talks in Kuala Lumpur.
Germany's export slump since 2021 is largely driven by deep-rooted competitiveness issues, the Bundesbank warned in its latest report, calling for urgent structural reforms.
Israeli researchers have unveiled an artificial intelligence tool that can determine a person’s true biological age from tiny DNA samples with remarkable precision.
Hollywood star Sydney Sweeney is reportedly the top contender to become the next Bond girl, as director Denis Villeneuve and Amazon look to modernise the James Bond franchise.
Iran has developed an investment plan aimed at attracting funding to expand its caviar production to more than 140 metric tons in the near future, - stated Nasser Karami-Rad, a senior official of the Iran Fisheries Organization.
Kazakhstan is weighing cryptocurrency-related investments as part of its strategy to diversify national reserves and modernise financial management, according to the chairman of the National Bank.
Electric car sales in Germany surged to a new record in the first half of 2025, making up 17.7% of all new vehicle registrations, according to the German road traffic agency KBA. Despite a 4.7% drop in overall car sales, demand for EVs grew by 35% year-on-year.
U.S. consumer prices rose at their fastest pace in five months in June, signaling the early impact of tariffs on inflation. However, subdued demand and falling service prices may keep the Federal Reserve cautious about rate changes.
A feasibility study for building a production chain at the Dashkesan iron ore deposits complex in Azerbaijan will be conducted after Dashkesan Iron Ore LLC, a subsidiary of CJSC AzerGold, signed an agreement with China's Sinosteel Equipment & Engineering Co Ltd.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment