SEOUL, April 02 (AJP) - South Korea's President Lee Jae Myung called for the immediate passage of a massive supplementary budget on Thursday, characterizing the current economic climate as a wartime state. Addressing the National Assembly, the president argued that the 34-day conflict in the Middle East necessitated a total mobilization of government resources.
During his speech at the National Assembly, Lee called for a 26.2 trillion-won ($17.2 billion) supplementary budget, warning that any delay in fiscal intervention would cause economic damage to grow exponentially. The president urged lawmakers not to miss the golden time for recovery, emphasizing that taxpayer money must be deployed at the most critical juncture to protect the people's livelihoods.
The escalating war in Iran has cornered South Korea, forcing Seoul into a defensive crouch as global energy supply chains fracture. South Korea remains precariously dependent on the Middle East for more than 70 percent of its crude oil imports. This reliance makes the domestic industrial base uniquely vulnerable to disruptions in the Strait of Hormuz, which has now become a no-trespassing zone for cargo and oil carriers.
According to data from the Korea Energy Economics Institute, any prolonged instability in the Persian Gulf creates a direct threat to the price of daily essentials. With the conflict showing no signs of abatement, the administration has moved to prioritize energy sovereignty over standard fiscal restraint.
This crisis interrupts a period of record-breaking growth for the South Korean industry. The KOSPI index recently breached the 5,000-point threshold on the back of strong semiconductor and shipbuilding exports. However, a sudden lack of raw materials now threatens to stifle that momentum and extinguish the hard-won sparks of national growth.
Shortages of naphtha and urea have already begun to impact the production of plastics and fertilizers. This creates a ripple effect touching everything from heavy manufacturing to local agriculture. The president noted that these shortages represent an unexpected, complex crisis that requires an immediate and coordinated response.
Seoul has responded by transitioning the entire government apparatus into an emergency economic response system. This includes the implementation of a maximum oil price cap for the first time in 29 years. The move is designed to shield consumers from the surging costs of gasoline and diesel.
To mitigate the loss of Iranian supply, the administration has secured 24 million barrels of crude oil through a strategic partnership with the United Arab Emirates. These multi-faceted policies, including financial support for affected businesses, are part of a proactive strategy to guard against the worst-case scenario.
"In a state of emergency, literally extraordinary measures are needed," Lee said, adding: "Our government is putting all its effort into overcoming the current crisis with a solemn perception that the livelihood economy is in a wartime situation."
The 26.2 trillion won budget is notable for being a debt-free proposal. The government plans to utilize 25.2 trillion won in excess tax revenue—largely generated by the recent boom in the stock and semiconductor markets—alongside 1 trillion won from existing funds. The National Assembly is scheduled to begin its review of the supplementary budget proposal immediately following the presidential address.
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