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President Lee Jae-myung delivers his first budget speech at the National Assembly in Yeouido, Seoul, on June 26, urging swift passage of the government's second supplementary budget. / Source: Yonhap News

President Lee Jae-myung on June 26 called on the National Assembly to swiftly approve the government’s 30.5 trillion won ($30.5 billion) supplementary budget proposal, saying, “Now is the right economic timing.”

Delivering his first budget speech before the National Assembly, Lee emphasized, “There’s an old saying—‘timing is everything in economics.’ Now is precisely that timing. We must not miss the golden window for recovery.”

He urged bipartisan cooperation to pass the second supplementary budget for 2025, outlining the plan’s major provisions. “The foremost duty of a government is to protect the lives of its people,” he said. “That means being pragmatic in the face of crisis and focused on safeguarding livelihoods.”

Lee stressed the need for “fair growth,” a vision that involves creating new engines for economic expansion and equitably sharing its benefits. “Only by opening the door to fair growth can we reduce polarization and inequality and move toward a society where all prosper together,” he said.

The largest portion of the extra budget—11.3 trillion won—is earmarked for stimulating consumption. Lee announced the issuance of universal consumption coupons worth up to 13 trillion won. All citizens will receive between 150,000 won and 520,000 won, with additional support tailored to vulnerable groups and population-declining regions.

To further boost domestic demand, the government will inject an additional 600 billion won into local gift certificates and raise their discount rates, increasing total issuance by 8 trillion won.

The budget also includes 3.9 trillion won to promote investment, including early spending on infrastructure such as railways, roads, and ports. An additional 5.4 trillion won in liquidity will be injected into the real estate project financing (PF) market to revive the construction sector.

Lee pledged support for future industries, including AI and renewable energy, and said 1.3 trillion won will be invested in venture capital and small business funds to reinvigorate South Korea’s growth momentum.

An additional 5 trillion won is allocated for social safety nets targeting small business owners and low-income groups. “From the COVID-19 crisis to the illegal martial law plot of December 3, small merchants and the vulnerable have endured immense pain,” Lee said, adding that the government will forgive long-overdue debts of 1.13 million financially distressed borrowers.

Debts under 50 million won that have been overdue for more than seven years will be written off to help individuals return to economic activity. The government also plans to extend installment periods and reduce interest for struggling entrepreneurs and raise closure support grants for those shutting down their businesses.

Lee also pledged fiscal reform, noting the government will adjust expected revenues by 10.3 trillion won to kick-start a return to fiscal normalcy.

“There is no ruling or opposition party when it comes to reviving the economy and public livelihoods,” Lee said. “This extra budget is not a luxury—it is a primer to relieve the drought of economic crisis and a minimal measure to support recovery.”

He concluded, “This government will remain a strong pillar for the people. Rooted in pragmatism, we will do our utmost to revive the economy and improve the lives of all citizens.”