"Unprecedented Economic Crisis at Jeonbuk, Let's Draft a Supplementary Budget"…Official Proposal by Woo Won-sik, Budget Committee Chairperson

Presented to National Assembly Budget Committee via Letter
Need for Proactive Response to Economic Crisis and Energy Cost Burden

[Asia Economy Reporter Naju-seok] Woo Won-sik, a member of the Democratic Party of Korea and chairman of the National Assembly's Special Committee on Budget and Accounts, urged the formulation of a supplementary budget on the 9th. Chairman Woo stated, "Fiscal policy must once again provide new momentum to revive livelihoods and the stalling economic engine. In the face of an unprecedented crisis, there is no distinction between ruling and opposition parties," and urged, "Let us create a supplementary budget to resolve the livelihood crisis, including heating cost support measures up to the middle class, as mentioned by President Yoon Seok-yeol."

On the same day, in a letter to the Budget and Accounts Committee members, Chairman Woo said, "The severe cold wave and soaring energy prices are causing increased suffering for many ordinary people more than any winter in previous years," and added, "As chairman of the Budget and Accounts Committee, I formally propose the formulation of a supplementary budget to fundamentally resolve the upcoming economic crisis, including the surge in energy prices."

He said, "We are now facing an unprecedented economic crisis," mentioning the lowest economic growth rate compared to Japan in 25 years and a trade deficit continuing for 11 consecutive months. He continued, "Unfortunately, the 2023 South Korean budget did not adequately prepare for this unprecedented crisis. The 2.5% economic growth rate forecasted at the time of the government's budget formulation is now expected to fall to the mid-1% range," and added, "The government prepared a tight budget based on rosy projections, but our economy is in a critical condition, requiring active government response."

Chairman Woo referred to the energy price crisis and said, "A supplementary budget to overcome the livelihood crisis, including fundamental solutions to the energy price crisis, is necessary," and emphasized, "Urgent measures to revitalize livelihoods are needed while minimizing concerns about stimulating inflation." He further stated, "This supplementary budget should not be limited to support for easing energy burdens," and added, "Significant investment must be increased in energy efficiency improvement projects to fundamentally reduce the energy cost burden on ordinary people."

Furthermore, he said, "The supplementary budget must be implemented as soon as possible to prevent the economic warmth from fading," and warned, "Delaying the supplementary budget to the second half of the year could only increase confusion due to political variables such as next year's general election. Since various public utility fees are also expected to increase from early this year, proactive measures are essential."