Supplementary budget expected to be passed April 10 amid Middle East crisis

Prices are listed at a gas station in Seoul, Sunday. Yonhap

The government, the ruling Democratic Party of Korea and the presidential office agreed Sunday to draw up a supplementary budget worth 25 trillion won ($16.59 billion) to cushion the impact of the Middle East conflict, officials said.

The decision was made during a high-level consultative meeting among the three sides to discuss details of this year's first supplementary budget, senior party spokesperson Rep. Kang Jun-hyeon told a press briefing.

"The supplementary budget will be around 25 trillion won. The government plans to utilize higher-than-expected tax revenues, without issuing additional government bonds, to minimize the impact on the foreign exchange market," Kang said.

"The party has requested the government to swiftly prepare the budget. Once the bill is submitted to the National Assembly, it will be given top priority to ease the burden on the public," he added.

Earlier, the party and the government agreed to draw up and submit a budget bill to the National Assembly by end-March, after President Lee Jae Myung ordered swift preparations to cope with the fallout from the ongoing conflict.

According to Rep. Kim Hyun-jung, the ruling party's floor spokesperson, the National Assembly aims to pass the bill at a plenary session scheduled for April 10, following relevant standing committee meetings on April 2 to 3.

The budget will focus on easing the burden of high global oil prices through energy price support, assisting vulnerable groups affected by rising costs and addressing difficulties faced by businesses, as U.S.-Israeli strikes on Iran that began late last month have escalated into a broader regional crisis.

"There was also consensus on providing more targeted support to vulnerable groups and regions through differentiated assistance," Kang said.

During Sunday's meeting, the government, the party and Cheong Wa Dae also agreed to mobilize "all available policy tools," including fiscal, tax and financial measures, to respond to the crisis.