South Korea has announced plans for a second supplementary budget this year, signaling a renewed push to stabilize its economy amid global market volatility. The move, revealed by the Ministry of Economy and Finance on Thursday, targets key sectors including semiconductor manufacturing, green energy infrastructure, and small business support.
Analysts suggest the 12.4 trillion won ($9.3 billion) package aims to counter slowing exports and rising household debt. 'This budget reinforces our commitment to innovation-led growth while maintaining fiscal discipline,' Finance Minister Choi Sang-mok stated during a press briefing in Seoul.
The decision comes as major Asian economies navigate post-pandemic recovery challenges. While details remain under parliamentary review, the proposal includes tax incentives for AI research and subsidies for renewable energy projects. Business leaders have welcomed the focus on technological competitiveness, though some economists warn about long-term debt sustainability.
Meanwhile, other Asian markets are adopting similar measures. Japan recently expanded its chip production subsidies, while Southeast Asian nations are coordinating regional investment strategies through ASEAN frameworks.
