Gov't Pledges Swift Action: 70% of Extra Budget to Boost Economy in Just Three Months

The Deputy Prime Minister and interim Minister of Economy and Finance, Kim Beom-seok, gave introductory comments at an economic ministry gathering held on May 8th at the governmental compound located in downtown Seoul. [NEWS1]

The Ministry of Economy and Finance stated on Thursday that they plan to implement 70% of the newly approved $9.9 billion (13.8 trillion won) supplementary budget within three months. This move aims to stimulate the domestic economy and assist exporting firms facing worldwide trade instabilities.

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

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The additional budget approved by the National Assembly last week consists of approximately 400 billion won designated for issuing local currency coupons aimed at assisting small traders. Additionally, it allocates about 89.8 billion won in vouchers specifically for export companies struggling due to global trade protectionism triggered by the tariff policies implemented under the current U.S. administration.

Following the implementation, businesses will have access to utilize export vouchers totaling 178.6 billion won starting in June along with a fresh 4 trillion-won low-interest lending initiative set for launch later this month.

According to the ministry, small business owners can receive up to 500,000 won in assistance during July to help with their utility and insurance expenses.

In an effort to boost South Korea’s artificial intelligence sector, the administration plans to launch a bid in May for a 1.7 trillion won initiative focused on obtaining advanced GPUs. Additionally, they aim to kick off a program in July designed to create 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-seok, alluding to the tariffs imposed under U.S. President Donald Trump’s administration as well as internal instabilities due to recent leadership changes. Last week saw both the outgoing Prime Minister and interim President Han Duck-soo along with ex-Finance Minister Choi Sang-mok resign from their positions.

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

Yonhap