South Korea Unveils USD 22 Billion Stimulus Budget to Revive Economy

Lee Jae Myung, President of South Korea, has introduced a 30.5 trillion won (USD 22.1 billion) supplementary budget proposal aimed at revitalising Korea's flagging economy, reported the Korea Herald, a South Korean English-language daily newspaper, on June 19.

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The proposal includes a 10.3 trillion won downward revision of projected revenue, the first such adjustment in five years, the South Korean daily reported.

"Fiscal soundness and adherence to balanced budgeting are important, but the current downturn is too severe for the government to stand by. It is time to put public finances to use," Lee said at a Cabinet meeting on Thursday, the news platform added. According to the news platform, the president emphasised two guiding priorities in the proposal.

"First, stimulating the economy. And second, ensuring the benefits are fairly distributed -- whether universally or partially -- according to who needs them most. These are also questions of values and ideology," he said, quoted by the platform.

The plan, which features universal cash payments to all citizens, received Cabinet approval on Thursday and is expected to be submitted to the National Assembly by Monday.

According to the Finance Ministry, reported by the Korean Herald, the supplementary budget includes approximately 20.2 trillion won in new expenditure. Of that amount, 15.2 trillion won is directed at spurring economic activity, while 5 trillion won is designated for supporting livelihoods.