Government Pledges to Fast-Track 70% of Emergency Budget in 3 Months to Boost Economy

(LEAD) extra budget-execution plan

SEOUL, May 8 (Yonhap) -- In an effort to strengthen the domestic economy and assist exporting firms facing worldwide trade instabilities, the Ministry of Finance announced on Thursday that they aim to allocate 70% of the newly approved additional budget worth 13.8 trillion won ($9.9 billion) within three months following its passage.

The Ministry of Economy and Finance disclosed the strategy during an assembly with economy-focused ministers, stating that rapid implementation is intended to amplify the effect of financial expenditures.

The extra budget, approved by the National Assembly last week, includes some 400 billion won for the issuance of local currency vouchers to help small merchants and 89.8 billion won worth of vouchers for export firms ailing amid global trade protectionism sparked by the U.S. administration's tariff scheme.

With the execution, companies will be able to start using export vouchers worth a combined 178.6 billion won in June and a new 4 trillion-won low-interest loan program later this month.

According to the ministry, small traders can receive up to 500,000 won of assistance in July to help with their expenses related to utilities and insurance.

In an effort to boost South Korea’s AI sector, the government plans to launch a bid worth 1.7 trillion won in May with the objective of acquiring advanced GPUs. Additionally, they aim to start another initiative in July focused on cultivating world-class large language models.

The economic landscape we face today holds more unpredictability than at any time previously," stated Acting Finance Minister Kim Beom-suk, alluding to the tariffs imposed under U.S. President Donald Trump’s regime as well as internal instabilities due to an ongoing leadership void. Last week saw both former Premier and interim President Han Duck-soo along with ex-Finance Secretary Choi Sang-mok resign from their positions.

He stated that the government will continue to concentrate on addressing risks and crucial matters to maintain stability and public trust throughout the rest of the present administration.

nyway@yna.co.kr

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