South Korea raises the budget by $17 billion to contain the energy shock
On Tuesday, the South Korean government proposed adding a supplementary budget worth 26.2 trillion won (about 17.1 billion US dollars) to ease the burden of the rising Energy prices on households and industrial sectors, in light of the crisis of supply shortages resulting from the conflict in the Middle East.
According to the Korean draft budget, about 10.1 trillion won will be allocated directly "To reduce the burden of high oil prices"While other measures include supporting exporters and increasing grants to local governments.
Seoul will also provide larger amounts to refund subscription fees Public transportation nationwide. The state will allocate 4.8 trillion won for purchasing vouchers worth between 100,000 won and 600,000 won per person, targeting the bottom 70%, depending on income and region.
Other measures in the relief package include fuel subsidies for farmers and fishermen, in addition to operators of small cargo ships, while about 9.7 trillion won will be used to increase grants to local governments.
The Minister of Planning wrote And the budget, Park Hong Geun, that "Rapid financial support is necessary to alleviate the difficulties facing people’s livelihoods as quickly as possible, and to ensure the continued recovery of the economy that the current administration has made strenuous efforts to revive."
South Korean media reported that the draft law was submitted to the National Assembly, is expected to have the support of the opposition People Power Party, and is expected to be passed by April 10, 2026.
South Korea, the fourth largest economy in Asia, imports 94% of its energy needs, according to a 2024 report issued by the Korea Energy Statistics Information System, and approximately 72% of its crude oil comes from The Middle East.
It witnessed Crude oil prices have risen sharply since the United States and Israel launched strikes on Iran on February 28, as a supply shortage crisis weighs on Asian economies, particularly those that rely heavily on imports from the Middle East.
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