Seoul allocates $17 billion to shield economy from Mideast crisis effects

South Korea has presented a supplementary budget of 26.2 trillion won (roughly $17.1 billion) aimed at mitigating the impact of the Middle East crisis and supporting its population, Yonhap reports.

The plan was approved at a government meeting led by President Yoon Suk-yeol. This marks the second supplementary budget since he took office.

Under the proposal, 10.1 trillion won ($6.6 billion) will be used to offset rising oil prices, 2.8 trillion won ($1.8 billion) to provide direct support to citizens, 2.6 trillion won ($1.7 billion) to assist industry and supply chains, 9.7 trillion won ($6.3 billion) to strengthen local finances, and 1 trillion won ($653.1 million) to repay public debt.

Authorities aim to stabilise living standards, bolster the economy, and accelerate the transition to new energy sources. The budget will be primarily financed through additional tax revenues, including growth from the semiconductor sector and the stock market.

The bill will be submitted to South Korea’s National Assembly, with a vote scheduled for April 10.

By Khagan Isayev