South Korea's Budget Clash: A Nation on the Brink

South Korea's opposition party plans to pass a 2025 budget bill after a political standoff led to President Yoon Suk Yeol's martial law decree. The budget originally proposed by the government was reduced by 4.1 trillion won, sparking debates over its impact on government functions and economic stability.

South Korea's political landscape remains tense as the main opposition party commits to passing a controversial 2025 government budget bill on Tuesday. The decision follows President Yoon Suk Yeol's recent martial law decree, enacted due to the ongoing parliamentary deadlock that arose after the legislature slashed 4.1 trillion won from the government's initial 677.4 trillion won budget proposal.

Democratic Party Leader Lee Jae-myung emphasized the importance of swift action, stating that passing the bill could alleviate the current state of political unrest. The government, however, warns that such cuts would severely impair administrative functions, hinder responses to external challenges, and derail critical policy measures for small businesses and the vulnerable population.

The financial markets are already reacting, with South Korea's treasury bond market showing signs of vulnerability. Three-year treasury bond futures have dropped 0.10 points to 106.79, reflecting apprehension toward potential future budget discussions. Daishin Securities analyst Kong Dong-rak noted the market's sensitivity to talks of an additional budget, which could be necessary for addressing immediate economic needs.

(With inputs from agencies.)