Seoul: South Korean President Lee Jae-myung has urged lawmakers to quickly approve a large extra budget as the country faces rising economic pressure from the ongoing tensions in the Middle East.
The government has proposed a supplementary budget of about 26.2 trillion won, or roughly 17 billion US dollars, to deal with the impact of higher oil prices and global uncertainty. The president said the situation poses one of the most serious energy security challenges in recent years.
South Korea depends heavily on energy imports, with a large share of its oil coming from the Middle East. Any disruption in the region has a direct effect on fuel costs, inflation and overall economic stability in the country.
The proposed budget focuses on helping both people and businesses cope with rising costs. A major portion is set aside to manage energy prices, while financial support will also be given to oil refiners affected by price controls. The plan includes assistance for low income households, young people and small businesses struggling with increased expenses.
The government also plans to provide consumer vouchers to ease the burden on households, although high income earners may be excluded from this benefit.
Officials said the budget will be funded mainly through higher tax revenues, supported by strong exports of semiconductors and gains in the stock market. The government aims to avoid taking on new debt while still supporting the economy.
Parliament is expected to vote on the proposal in the coming days. If approved, the government plans to put the measures into action immediately.
Despite strong export growth, the Middle East crisis remains a major concern for South Korea’s economy. The government hopes the new budget will help reduce the impact of global instability and protect both businesses and ordinary citizens.