On the 16th, the presidential office announced that the 2025 supplementary budget proposal (second supplementary budget) is set to be presented at the cabinet meeting scheduled for the 19th. President Lee Jae-myung has been pushing strongly for a supplementary budget focused on economic recovery since taking office. The core of this supplementary budget, the Livelihood Recovery Support Grant, is likely to shift from universal disbursement to targeted, differentiated payments.
The overall budget is expected to be around 20 trillion won. The first supplementary budget passed last month amounted to 13.8 trillion won, falling short of the Democratic Party’s initial demand for 35 trillion won. In the upcoming supplementary budget, the Livelihood Recovery Support Grant will be the largest component and will be distributed based on income levels. It is proposed to distribute between 150,000 won and 500,000 won to different income groups, a shift from the initial plan of giving a universal payment of 250,000 won per person.
Although the ruling party initially emphasized universal disbursement, they are unlikely to oppose the differentiated payment approach now that the government’s plan has been set. A member of the party’s leadership stated, “If the government has set aside universal payment due to financial considerations, it’s difficult to oppose it outright while we will respect the government’s plan and try to incorporate as much of the universal payment as possible.”