Minister of Budget Park Hong-geun said the government would "assess the situation based on fiscal capacity if the conflict drags on and inflicts severe damage," when asked about the possibility of a second supplementary budget amid the prolonged war in the Middle East.
Appearing on MBC Radio's "Kim Jong-bae's Focus" on the 6th, Park said, "As the war drags on, crude oil prices could spike far beyond our expectations, and these are all unpredictable factors." He added, "No one can say with certainty that a second supplementary budget is 'not being considered at all.'"
The current supplementary budget was funded entirely by excess tax revenue without issuing government bonds. Asked about concerns that the war's fallout could dampen the pace of tax revenue growth, Park said, "Semiconductors and securities are feeling some impact from the Middle East situation, but the boom will continue for the time being."
The supplementary budget totals 26.2 trillion won (approximately $19.4 billion), drawing on 25.2 trillion won in excess tax revenue — driven by a buoyant stock market and semiconductor boom — along with 1 trillion won from fund reserves. Key spending items include relief payments of 100,000 to 600,000 won per person for high oil price damages, targeting citizens in the bottom 70% income bracket. The relief payments are expected to be disbursed sequentially starting as early as this month.
Park also pushed back against criticism that the supplementary budget amounts to vote-buying ahead of elections. "The Middle East situation is having a very significant impact on the livelihoods of our people," he said. "This supplementary budget is a preemptive seawall." He noted that many countries overseas are also increasing contingency reserves or allocating relief funds.
Park also explained the background behind President Lee Jae-myung's mention of an emergency fiscal decree at a Cabinet meeting last month. "An emergency fiscal decree ultimately requires National Assembly approval under the constitution and relevant laws," he said. "At the time, the president was speaking in the context of 'mobilizing all policy tools in the event of an economic crisis or emergency.'"