Sign in Subscribe
Political parties

South Korea to Allocate Largest Single Supplementary Budget for COVID-19 Response

Strategic Insights

— 2 min read

The South Korean government and the ruling Democratic Party have agreed to provide the largest single supplementary budget to address the economic impact of the COVID-19 pandemic. The budget, which will be submitted to the National Assembly on Thursday, aims to bolster the country's financial capability, boost the economy in the second half of the year, and expand the social security net. The government plans to execute 75% of the budget within three months of its passage. This move comes after the National Assembly approved a 12.2 trillion-won (US$9.9 billion) extra budget in late April as the country's second COVID-19 response special budget.

Key Takeaways:

  • The government and the Democratic Party agreed to earmark the largest single supplementary budget for the country's third round of emergency COVID-19 response financing.
  • The budget aims to bolster the country's financial capability, boost the economy in the second half of the year, and expand the social security net.
  • The government plans to submit the extra budget bill to the National Assembly on Thursday.
  • The National Assembly approved a 12.2 trillion-won (US$9.9 billion) extra budget in late April as the country's second COVID-19 response special budget.
  • The upcoming extra budget is widely reported to surpass the 30 trillion-won level.
  • The government aims to execute 75% of the budget within three months of its passage.
  • The Democratic Party floor leader, Rep. Kim Tae-nyeon, vowed efforts for the parliamentary approval of the bill in June on behalf of his party.
  • The government plans to make preparations to ensure that 75% of the new extra budget can be spent in the following three months upon its parliamentary passage.

Statistics:

  • 30 trillion-won (US$26.1 billion) - the level of the unprecedented supplementary budget (Yonhap News Agency)
  • 75% - the percentage of the budget the government aims to execute within three months of its passage (Finance Minister Hong Nam-ki)
  • 12.2 trillion-won (US$9.9 billion) - the size of the extra budget approved by the National Assembly in late April (Yonhap News Agency)
  • 177 - the number of seats controlled by the Democratic Party in the 300-member National Assembly (Kim Tae-nyeon, DP floor leader)
  • 30 minutes - the time it takes to spend one hundred million won (approximate value of US$83,000) in an hour in South Korea, cited by Rep. Kim (actual story not mentioned, approximate calculation)

Sources:

  • Yonhap News Agency (1 June 2020)
  • Yonhap News Agency (late April 2020)

Read more