SEOUL, July 5 (AJP) - South Korea on Saturday approved a 31.8 trillion won ($22.7 billion) supplementary budget aimed at reviving the economy and supporting livelihoods.
The cabinet meeting, held at the presidential office in Yongsan, followed the budget’s parliamentary approval the night before. President Lee Jae-myung, who presided over the meeting, said the move was in response to the country’s “difficult economic conditions” and urged each ministry to ensure the smooth implementation of the measures.
A central part of the budget is a 13.8 trillion won ($9.7 billion) cash voucher program designed to boost private consumption. All 51.17 million citizens will receive between 150,000 and 550,000 won ($109–$400), depending on their income brackets and region of residence. Those in non-capital or population-declining areas will get the highest amount.
The voucher budget was initially set at 13.2 trillion won ($9.4 billion) but was increased by 600 billion won ($430 million) during National Assembly deliberations, led by the ruling Democratic Party (DP).
“Handing out cash efficiently and quickly will play a key role in stimulating demand and aiding economic recovery,” Lee said. The first round of payments is expected to be made as early as this month.
The main opposition People Power Party (PPP) criticized the move, warning it could worsen the national debt, which has already surpassed 1,300 trillion won ($930 billion). The debt-to-GDP ratio has also climbed to nearly 50 percent.
Meanwhile, the meeting was also the first for new Prime Minister Kim Min-seok, confirmed earlier this week. Kim said he felt a “strong sense of responsibility” and would work with urgency and accountability as the President’s chief aide.
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