On the 18th, during a meeting chaired by National Assembly Speaker Woo Won-shik, the ruling and opposition parties agreed to request the government to submit a supplementary budget proposal by the end of the month, accelerating the progress on forming the budget. If the proposal is submitted swiftly and discussions in the National Assembly proceed efficiently, it could be processed by the end of April.
However, disagreements between the ruling and opposition parties remain regarding the scale and allocation of the supplementary budget. The ruling People Power Party is suggesting a budget of around 15 trillion won, focusing on supporting self-employed individuals and small business owners. In contrast, the opposition Democratic Party is advocating for a “super supplementary budget” of 35 trillion won aimed at recovering public livelihoods and boosting economic growth.
The urgency in forming the supplementary budget is due to the shared understanding of the severe economic situation. The Organization for Economic Cooperation and Development (OECD) recently lowered its forecast for South Korea’s economic growth rate from 2.1% to 1.5%, while the Bank of Korea also adjusted its rate down to 1.5%, reflecting growing economic concerns.