South Korea approves $14.7 billion second extra budget to boost economy

Seoul: South Korea will implement a second supplementary budget worth 20.2 trillion won ($14.7 billion) aimed at revitalising domestic consumption and bolstering the economy, including the distribution of cash handouts to all citizens.

According to South Korea's (Yonhap) News Agency, the Ministry of Economy and Finance said in a statement on Thursday 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. It follows a 13.8 trillion-won extra budget passed in May and is subject to parliamentary approval."

"The government will support economic revitalization by promoting consumption, encouraging investment and expanding construction spending," the ministry said in a statement.

The government will inject 10.3 trillion won to provide "consumption coupons" ranging from 150,000 to 500,000 won per person, depending on income levels, the ministry said.

During the January–April period, South Korea's managed fiscal balance, a stricter measure of fiscal health, recorded a deficit of 46.1 trillion won, according to government data.

In 2024, the fiscal deficit exceeded 100 trillion won.