The Middle East war’s shockwaves are hitting South Korea hard, with oil prices soaring and supply chains fraying. In response, lawmakers in Seoul are set to vote Friday on a massive supplementary budget exceeding 30 trillion won ($20.3 billion), up from an original 26.2 trillion won proposal.
This expanded fiscal package, refined through committee scrutiny, targets relief for small enterprises and vulnerable families grappling with inflated energy costs. A flagship measure offers cash handouts to 70% of the population in the lowest income brackets—up to 600,000 won each for 35.8 million people, tailored by earnings and location.
Partisan divides persist despite an earlier consensus on timing. The Democratic Party, in power, pushes for immediate approval to stem economic pain. Opponents from the People Power Party argue that some allocations stray from essential aid, advocating for streamlined support programs.
Beyond the budget, proactive energy security moves are underway. South Korea locked in 60 million barrels of substitute crude for May after the Hormuz Strait bottleneck crippled Middle East flows. Deputy Minister Yang Gi-wook updated that 110 million barrels have been sourced from diverse suppliers like the US, Saudi Arabia, UAE, Brazil, and Canada—meeting 60% of April needs and 70% for May.
Oil swap deals are accelerating too: Major refiners aim to access over 30 million barrels on loan, starting with 8 million this week.
The full Assembly session today will decide the bill’s fate, a pivotal moment as South Korea navigates war-induced volatility. Success here could stabilize prices and livelihoods, underscoring the nation’s strategic agility in global crises.
