Government: "10 Trillion Won Supplementary Budget Not Intended for Economic Stimulus... Size May Change"

The Decisive Factor Was Wildfire Response...
Trade and Small Business Support Needed
Budget Scale May Change If Rapid Action Principle Is Agreed

The government emphasized that the 10 trillion won supplementary budget plan is intended for essential projects such as support for wildfire damage rather than economic stimulus. Although the detailed items of the supplementary budget were not disclosed, it was stated that the proportion allocated to wildfire damage response would not be small.

Kang Young-gyu, spokesperson for the Ministry of Economy and Finance, said at a regular briefing held at the Government Complex Sejong on the 31st, "The purpose of this supplementary budget itself is more about wildfire damage recovery, trade issues, and livelihood rather than economic stimulus," adding, "Some say the economic stimulus effect is small, but there are parts that must be spent, such as supporting wildfire victims in difficulty, and that is the purpose of the supplementary budget."

He said, "The basic concept of the supplementary budget is to solve urgent issues immediately, and the decisive factor was the wildfires," adding, "We cannot just tell those people (victims) to wait for recovery." He continued, "In order, wildfire response comes first, then artificial intelligence (AI) trade response, and thirdly, livelihood response is the content of the supplementary budget."

Regarding specific supplementary budget projects, he explained that nothing has been decided yet. Spokesperson Kang said, "The Budget Office internally estimated and calculated the budget needed for essential projects and set the scale," adding, "Projects with disagreements between the ruling and opposition parties were excluded to quickly execute only those that can be promptly implemented, estimating about 10 trillion won, and the detailed items will be discussed with related ministries after agreement between the ruling and opposition parties."

He also said, "In the past, supplementary budgets were not made by setting a fixed scale," adding, "If you do that, unnecessary projects might be included." He explained, "It does not mean that it is fixed at 10 trillion won, but the government judged that this amount is necessary."

It is expected to take time to assess the scale of wildfire damage. Spokesperson Kang said, "It takes a little time to estimate," but explained, "The damage is greater than the 2022 (East Coast) wildfires, so the cost will be higher." Regarding whether the contingency fund increase will be included, he mentioned, "It will be clearly decided after actually estimating the wildfire damage amount."

Regarding the timeline for the supplementary budget bill, he hinted at a speed race. Spokesperson Kang said, "It is difficult to say clearly," but added, "If the ruling and opposition parties agree, after consultations with related ministries, it will be prepared as soon as possible, then submitted quickly to the National Assembly after a temporary Cabinet meeting."