In a report released Sunday, the Bank of Korea stressed the importance of bipartisan cooperation to mitigate economic uncertainties exacerbated by domestic political instability and global market volatility.
“There is an urgent need to reassure the international community that our economic system continues to function normally through swift bipartisan agreement on major economic policies, including the supplementary budget,” the central bank said.
The proposed budget includes funding for the semiconductor cluster transmission line project in Yongin City, Gyeonggi Province. The project, which requires approximately 1.8 trillion won (around $1.25 billion), had previously been stalled due to opposition during regular budget negotiations.
Lee Jae-myung, leader of the Democratic Party, voiced conditional support for the extra budget on Sunday, emphasizing that it should prioritize assistance for small businesses, local currency initiatives, and power infrastructure investments.
The Ministry of Finance, however, has adopted a cautious stance, arguing that supplementary budgets are traditionally reserved for extraordinary circumstances, such as wars, natural disasters, or significant shifts in inter-Korean relations.
The debate over the additional budget is set to intensify as economists argue it could offset the 4.1 trillion won reduction in the initial 2024 budget while helping to stabilize the economy amid ongoing political uncertainty.
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