South Korea Announces $17 Billion Budget to Combat Middle East Crisis Fallout

President Lee Jae Myung urges swift approval of a $17.1 billion budget to counter economic setbacks from the Middle East conflict. The budget aims to relieve high fuel costs, ensure supply of materials, and provide financial aid to 35.8 million citizens without increasing public debt, despite geopolitical tensions.

In a decisive move to shield South Korea's economy from the escalating Middle East conflict, President Lee Jae Myung has called on the National Assembly to expedite the approval of a KRW 26.2 trillion ($17.1 billion) emergency budget. The budget intends to counteract soaring fuel costs and material shortages affecting critical industries.

Labeling the situation a 'wartime-level crisis', Lee underscored the importance of actions such as maintaining a fuel price cap system and enhancing transparency in pricing and distribution. Significant funds will also bolster stockpiling and raw material supply to avert industrial disruptions, particularly chemical and fertilizer sectors.

The proposal allocates KRW 4.8 trillion for direct financial aid to approximately 35.8 million people, targeting lower-income groups. Lee emphasized funding through increased tax revenues from strong stock market and semiconductor performances, assuaging concerns over public debt. Bipartisan consensus aims for an April 10 budget passage.

(With inputs from agencies.)