Sign in Subscribe
Budgets

South Korean Government Approves Second Extra Budget Proposal Amid Economic Downturn

Strategic Insights

— 1 min read

President Lee Jae Myung stressed the importance of an active role for the government in stabilizing the economy, citing the severe current economic downturn as justification for the government's intervention. The supplementary budget proposal, worth 20.2 trillion won (US$14.7 billion), includes a plan to inject 10.3 trillion won to provide "consumption coupons" ranging from 150,000 to 500,000 won per person to stimulate private consumption. President Lee acknowledged differing opinions over whether to adopt a universal or differentiated approach for the coupon distribution, opting for a balanced approach combining both income assistance and economic stimulation.

Key Takeaways:

  • The South Korean government has approved a second extra budget proposal worth 20.2 trillion won (US$14.7 billion) to stimulate the economy amid the current downturn.
  • The proposal includes a plan to inject 10.3 trillion won to provide "consumption coupons" ranging from 150,000 to 500,000 won per person to stimulate private consumption.
  • President Lee Jae Myung emphasized the need for the government to take an active role in stabilizing the economy, particularly as the private sector remains sluggish.
  • The government plans to maintain a balance between income assistance and economic stimulation through the coupon distribution, combining universal and differentiated approaches.
  • The supplementary budget proposal must be reviewed by the Cabinet before being submitted to the National Assembly for approval.
  • President Lee acknowledged the ongoing debate over the distribution approach and expressed a willingness to consider different perspectives.
  • The previous extra budget, passed last month, included 400 billion won for the issuance of vouchers to help small merchants.

Statistics:

  • The supplementary budget proposal is worth 20.2 trillion won (US$14.7 billion).
  • The government plans to inject 10.3 trillion won to provide "consumption coupons".
  • The cuisine coupons will range from 150,000 to 500,000 won per person.
  • The government has already passed a 13.8 trillion-won extra budget, including 400 billion won for vouchers to help small merchants.
  • The consumption coupons will be aimed at stimulating private consumption.

Sources:

  • President Lee Jae Myung, Yonhap News Agency (June 19, 2025)

Read more