The ruling and opposition parties reached a surprise agreement on Thursday to maintain the supplementary budget for responding to the Middle East crisis at 26.2 trillion won ($18.4 billion), the same level as the government's original proposal. Both parties plan to hold a plenary session at the National Assembly later in the day to pass the supplementary budget through consensus.
Han Byung-do, floor leader of the Democratic Party of Korea, and Song Eon-seok, floor leader of the People Power Party, met at the National Assembly Thursday afternoon and signed an agreement on the supplementary budget. According to the agreement, both parties will maintain the total budget at 26.2 trillion won through increases and decreases in specific line items from the government's proposal.
The high oil price damage relief fund targeting 70% of the population, which had been a key point of contention, will be processed according to the government's original proposal without any cuts, the parties agreed. Lee So-young, a Democratic Party lawmaker serving as secretary of the National Assembly's Special Committee on Budget and Accounts, told reporters after the agreement announcement, "The high oil price damage relief fund has been maintained at the original level without any reduction."
While the supplementary budget's total size remains the same as the government's proposal, some details have been adjusted. The budget for responding to high oil prices and raw material supply instability has been increased from the government's proposal, while some short-term job creation programs have been reduced.
Specifically, to ease the burden on farmers and fishermen from high oil prices, a temporary fuel price-linked subsidy for agricultural machinery will be newly established, and the fuel price-linked subsidy for tax-exempt diesel for agricultural and fishing workers will be raised. Support for fuel cost relief for coastal passenger ships and expanded mineral fertilizer support will also be included. The total budget required for these measures is 200 billion won.
Additionally, 100 billion won will be added to temporarily offer a 50% discount on K-Pass to encourage public transportation use and reduce fuel costs.
To support the industrial sector, 200 billion won for stabilizing the supply of naphtha, an essential raw material for producing daily necessities, will also be expanded and included. Lee explained, "The original supplementary budget included a price difference subsidy to support naphtha imports, but we have added additional funding to expand the period, volume, and eligible recipients to help stabilize supply."
Furthermore, the parties agreed to revise the Passenger Transport Service Act enforcement decree to allow temporary fuel price-linked subsidies for chartered buses.
The ruling and opposition parties offset the increases by making some reductions to short-term job creation programs. Lee said, "We reduced some of the short-term job creation programs within an appropriate range. There was no disagreement that job programs are necessary for vulnerable groups and citizens without jobs, but we resolved the differences between the ruling and opposition parties regarding the scope and scale through adjustments."
The so-called 'Chinese Jim Carrey' budget, which the opposition had called for cuts to, will also be reduced. Rather than completely eliminating the program, adjustments will be made including changing the specified target from 'Greater China' to 'Global,' along with reductions.
