Next Year's Record-Breaking 607.7 Trillion 'Super Budget' Passed... 3.3 Trillion Increased in National Assembly Ahead of Presidential Election

The National Assembly Approves Net Increase for Second Consecutive Year Exceeding Government Proposal... First Time in 12 Years Since Global Financial Crisis
Minimum Compensation for Small Business Losses Raised from 100,000 to 500,000 Won... Local Currency Budget Increased from 6 Trillion to 15 Trillion Won
Increased Quarantine Budget for Oral Therapeutics and Securing Severe Care Beds
Budgets for Discount Coupons on Agricultural and Livestock Products and Emergency Supplies to Address Supply Chain Disruptions

The passage of next year's budget bill amounting to 607.7 trillion won at the National Assembly plenary session on the 3rd.

[Sejong=Asia Economy Reporter Moon Chaeseok] The National Assembly has finalized next year's budget at a record high of 607.7 trillion won, increasing it by 3.3 trillion won from the government's proposed plan. This marks the second consecutive year that the budget has increased during the National Assembly's review process.

On the 3rd, the Ministry of Economy and Finance announced that the 607.7 trillion won budget for next year passed the plenary session of the National Assembly that morning. This is an increase of 3.3 trillion won from the 604.4 trillion won budget proposed by the government. The consecutive budget increase for two years is the first time in 12 years since the global financial crisis in 2009 (7 billion won) and 2010 (1 trillion won). The passage was delayed by one day past the legal deadline due to difficulties in reaching an agreement between the ruling and opposition parties.

Because of this, there is controversy over whether the budget increase was aimed at the presidential election, which is just three months away. The National Assembly raised the minimum compensation for small business losses from 100,000 won to 500,000 won per quarter. The support for issuing local love gift certificates (local currency) was increased from 6 trillion won to 15 trillion won. An additional budget was allocated to support loans of 35.5 trillion won at a minimum annual interest rate of 1% for 2.13 million small business owners. Furthermore, 400 billion won in additional support was decided for industries excluded from loss compensation, such as tourism, sports, culture, taxis, and buses.

Due to the spread of the COVID-19 variant Omicron, the budget for quarantine-related measures was also increased. To strengthen COVID-19 quarantine and medical support, additional budgets were allocated for ▲ purchasing 404,000 oral antiviral treatments (400 billion won) ▲ support for vaccine adverse reactions with insufficient causality (24.2 billion won) ▲ expanding severe patient beds from 10,000 to 14,000 (400 billion won).

The budget for child care was also increased. The unit price for Nuri childcare fees was raised by 20,000 won, and the increase rate for institutional childcare fees was adjusted upward from 3% to 8%. A congratulatory payment of 2 million won, the same amount as the first meeting voucher given to newborns, will be provided to adopted children. The monthly adoption child-rearing allowance will increase from 150,000 won to 200,000 won. Professional foster parents will also receive a monthly protection fee of 1 million won.

Additionally, the budget for supporting farmers and fishermen and stabilizing prices of agricultural and marine products increased by 300 billion won. The budget includes support for three agricultural food consumption projects: fruit snacks for elementary school aftercare classrooms, eco-friendly agricultural products for pregnant women, and agricultural food vouchers, as well as a 20% discount consumption coupon for agricultural, livestock, and marine products.

The budget for emergency supply response due to supply chain disruptions was also increased. To ensure stable supply of vulnerable materials such as urea, the government will establish a support system to purchase urgently and resell to manufacturing companies, and the budget for stockpiling rare earth elements for four types was also included. The industrial field support budget was increased by 300 billion won.

The government plans to submit the public announcement and allocation plan of the budget finalized by the National Assembly to the Cabinet meeting on the 7th for approval. A government official said, "More than 70% of the total expenditure budget will be allocated in the first half of the year to support overcoming the COVID crisis and early economic recovery," and added, "We will promptly proceed with pre-budget execution procedures so that fiscal execution can begin simultaneously with the start of the fiscal year on January 1 next year."