South Korea’s Finance Minister Choi Sang-mok said on March 30 that the government will seek a 10 trillion won ($7.4 billion) supplementary budget to address urgent issues, including wildfire recovery and trade risks. The move marks a shift from the administration’s earlier stance that any extra budget should be based on a bipartisan policy framework.
At an emergency economic meeting in Seoul, Choi warned of mounting economic challenges. The meeting was attended by Science and ICT Minister Yoo Sang-im, Agriculture Minister Song Mi-ryung, Trade Minister Ahn Duk-geun, SMEs Minister Oh Young-ju, and Office for Government Policy Coordination Minister Bang Ki-sun.
“Wildfires have burned 48,000 hectares of forest and left 75 dead or injured, marking the worst damage on record,” Choi said. “Swift and coordinated recovery efforts are critical to helping affected residents return to their daily lives.”
He also cited escalating trade tensions, including new U.S. tariffs, and fierce competition in AI and other high-tech sectors as urgent risks.
“To overcome these challenges, we must fully mobilize state resources,” Choi said. “Beyond utilizing existing funds, a swift injection of additional fiscal support is necessary.”
The proposed supplementary budget will focus on three key areas: disaster recovery, trade and AI competitiveness, and public welfare. “We will prioritize wildfire recovery by securing funds to restore affected areas and strengthen fire prevention and response systems,” Choi said.
He added that the government would expand trade financing and supply chain support for key export sectors to navigate global uncertainties. Additional assistance will also be provided to small businesses struggling with weak domestic demand.
Choi urged lawmakers to cooperate in passing the budget swiftly, warning that partisan disputes or unrelated spending increases could delay approval and weaken its impact. “If both ruling and opposition parties agree on the necessity of this supplementary budget, we will quickly finalize the proposal and submit it to the National Assembly,” he said. “We ask for bipartisan support to ensure passage by April.”
A finance ministry official said the government had initially preferred a cross-party policy framework before proposing an extra budget but decided to move forward due to the urgency of wildfire recovery and other pressing issues. “With no clear timeline for bipartisan talks, we are focusing the supplementary budget on urgent, broadly supported areas,” the official said.
