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Lawmakers vote to approve the first supplementary budget for 2025 during a plenary session at the National Assembly in Seoul on May 1. / Source: Yonhap News

The National Assembly on May 1 approved a supplementary budget totaling 13.8 trillion won for 2025, 1.6 trillion won more than the government's original proposal.

According to the Ministry of Economy and Finance, the revised budget focuses on bolstering public welfare and the construction sector.

Funding for livelihood support increased by 800 billion won. Of this, 400 billion won will go toward issuing local gift certificates for small business owners, while 115.7 billion won is allocated for additional national scholarships for university students. Another 100 billion won will be used to expand discounts on agricultural, livestock, and seafood products.

A total of 812.2 billion won will be used to support housing and construction. This includes 488.8 billion won to increase support for the purchase of newly built rental housing units (from 55,000 to 60,000 units) and to expand the supply of public-private rental housing (from 15,000 to 20,000 units). An additional 323.4 billion won will go to fast-tracking the double-track rail project between Osong and Pyeongtaek.

An extra 100 billion won will be directed to disaster prevention, including recovery from large wildfires in the Yeongnam region and sinkhole prevention efforts. Another 100 billion won is earmarked to counter trade risks, such as U.S. tariff policy, and to boost AI competitiveness.

In contrast, emergency management loan funds were cut by 200 billion won and government bond interest payments reduced by 19.3 billion won compared to the original proposal.

Of the 1.6 trillion won increase, 1.4 trillion won will be financed through additional government bond issuance, with the rest covered by available surplus from public funds.

As a result of the supplementary budget, the managed fiscal deficit is projected to widen from 2.8% to 3.3% of GDP, while the national debt-to-GDP ratio is expected to rise slightly from 48.1% to 48.4%.

“The government plans to swiftly execute the approved budget within the year, given the urgency of responding to wildfire damage and unexpected trade conditions,” the ministry said.