The National Assembly passed a 26.2 trillion won supplementary budget bill designed to mitigate damages from the Middle East crisis during a plenary session on the 10th.
The Assembly convened a late-night plenary session and approved the supplementary budget containing these provisions. While 794.2 billion won was cut and 790.8 billion won was added from the government's original proposal—resulting in a net reduction of 3.4 billion won—the overall scale remained largely intact. Han Byeong-do, floor leader of the Democratic Party of Korea, and Song Eon-seok, floor leader of the People Power Party, met several times on the day of the agreed deadline to reconcile differences and reach a compromise.
The budget for high oil price relief payments to be distributed to the bottom 70% of the population by income to help overcome high oil prices was maintained at the government's proposed 4.8 trillion won. The relief payments, ranging from 100,000 to 600,000 won per person, are expected to be distributed starting this month, beginning with vulnerable groups.
The ruling and opposition parties agreed to increase the budget by 204.9 billion won for stabilizing naphtha supply, which has faced procurement difficulties due to the Middle East situation. An additional 102.7 billion won was allocated to temporarily provide a 50% discount on K-Pass, the public transportation fare rebate service. Other additions include 200 billion won for establishing fuel price-linked subsidies for agricultural machinery, increasing fuel price-linked subsidies for tax-exempt diesel for farmers and fishers, supporting fuel costs for coastal passenger ships, and expanding mineral fertilizer support.
Some projects that the opposition argued were inconsistent with the supplementary budget's purpose will see reductions. The so-called "Chinese luggage carrier" budget for charter flight-linked tourism packages from China to Korean regional destinations will be reduced and the program content improved. Short-term job creation program budgets will also be slightly reduced. The SME fund-of-funds contribution budget was cut by 110 billion won, and the Tomorrow Learning Card general program by 101.8 billion won.
"We formed a consensus that we must unite for the national interest during this national crisis caused by the Middle East war," floor leader Han said. Floor leader Song said, "I consider this a 'war-excuse supplementary budget,' but we agreed to pass it for the people's livelihoods."
Kang Yu-jeong, Senior Presidential Secretary for Public Communication, said in a written briefing, "We are grateful that the ruling and opposition parties prioritized the national interest with bipartisan cooperation in the face of the crisis caused by the Middle East war and swiftly processed the supplementary budget." She added, "The Lee Jae-myung administration will do its best for swift execution, including advancing follow-up procedures so that this supplementary budget can be felt on the ground as quickly as possible."
