President Lee Jae-myung said on the 10th that a supplementary budget appears necessary in the near term to support vulnerable groups affected by rising fuel costs stemming from Middle East tensions. This marks the first time the president has directly mentioned the need for a supplementary budget.
"Even if we try to provide fiscal support, aid for small business owners, or assistance for struggling companies, additional funding is needed. The existing budget is expected to fall short," Lee said during a Cabinet meeting at the Blue House.
As oil product prices surged amid deteriorating conditions in the Middle East, Lee noted that "when crises arrive, those in difficulty face even greater hardship while the upper class benefits further." He added that "uniformly reducing fuel tax burdens cannot control this tendency."
The president outlined two policy options: "If we cut fuel taxes uniformly, we cannot control the worsening polarization. Instead, if we use the equivalent funds to target support toward ordinary citizens and struggling consumer groups, we can prevent or mitigate polarization."
Lee also instructed officials to consider a mixed approach. "It's not an either-or choice. We could combine both—for example, slightly lowering fuel taxes while providing differentiated fiscal support centered on ordinary citizens."
"Don't we need a supplementary budget to directly support consumers?" Lee asked. Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol responded, "We will maximize the use of existing budgets and actively consider it if necessary," effectively formalizing plans for a supplementary budget.