Rival parties reach deal on supplementary budget to weather Middle East crisis

By Lee Hugh Posted : April 10, 2026, 17:23 Updated : April 10, 2026, 17:37
Han Byung-do (3rd from left) and Song Eon-seog (2nd from left), floor leaders of the ruling Democratic Party (DP) and the main opposition People Power Party pose for a photo at the National Assembly in Seoul on April 10, 2026. Yonhap
SEOUL, April 10 (AJP) - The ruling Democratic Party (DP) and the main opposition People Power Party (PPP) on Friday agreed on a supplementary budget to cope with the prolonged Middle East crisis while easing the burden on those hit hardest by soaring fuel prices.

The extra budget of about 26 trillion Korean won (US$17 billion), which is expected to be passed at a parliamentary plenary session later in the day, also includes cash handouts to be provided to those in the bottom 70 percent of income earners.

About 4 million people will receive between 100,000 won and 600,000 won per person, with payments varying by income level, with those in rural and provincial areas receiving more support.

Earlier, the PPP had demanded a massive cut to the budget, criticizing it as a populist move to woo voters ahead of local elections slated for June 3, while the DP urged the swift passage of the budget to support people's livelihoods including small businesses and vulnerable households.

The DP and the PPP also agreed to allocate an additional 200 billion won to ensure a stable supply of naphtha amid rising crude prices, as securing feedstock has become increasingly difficult.

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