UPDATE 1-South Korea parliament approves 31.8 trillion won extra budget to bolster economy

South Korea's government debt will rise to 49.1% of gross domestic product, from 48.4%, and fiscal deficit to 4.2% from 3.3%, as 21.1 trillion won out of the total will be financed by issuing additional bonds.

South Korea's parliament approved a supplementary budget on Friday of 31.8 trillion won ($23.3 billion), supporting President Lee Jae Myung's push to bolster an economy grappling with trade headwinds and tepid consumption.

The spending plan that parliament approved is larger than 30.5 trillion won proposed by the government. The government will hold a cabinet meeting on Saturday to adopt the revised budget, the Finance Ministry said. Lee inherited an economy facing weakening demand after months of national turmoil triggered by ousted leader Yoon Suk Yeol's failed martial law decree in December.

The economy unexpectedly contracted in the first quarter against the backdrop of U.S. President Donald Trump's sweeping tariffs and is seen expanding a mere 0.8% this year, according to the Bank of Korea. South Korea's government debt will rise to 49.1% of gross domestic product, from 48.4%, and fiscal deficit to 4.2% from 3.3%, as 21.1 trillion won out of the total will be financed by issuing additional bonds. ($1 = 1,362.3000 won)