Seoul: South Korea will implement a second supplementary budget worth 20.2 trillion won ($14.7 billion) aimed at revitalizing domestic consumption and bolstering the economy, including the distribution of cash handouts to all citizens.
According to Oman News Agency, the Ministry of Economy and Finance announced that the supplementary budget, the second this year and the first since President Lee Jae Myung took office two weeks ago, was approved at a Cabinet meeting. This budget follows a 13.8 trillion-won extra budget passed in May and is pending parliamentary approval.
The ministry stated that the government will support economic revitalization by promoting consumption, encouraging investment, and expanding construction spending. As part of this initiative, the government plans to allocate 10.3 trillion won to provide “consumption coupons” ranging from 150,000 to 500,000 won per person, depending on income levels.
During the January-April period, South Korea’s managed fiscal balance recorded a deficit of 46.1 trillion won, as per government data. In 2024, the fiscal deficit exceeded 100 trillion won.