South Korean President Lee Jae-myung Advocates Economic Recovery Supplementary Budget

South Korean President Lee Jae-myung on Monday pressed officials to quickly draft a supplementary budget plan to support economic recovery and boost consumption, according to a statement from his office.

Having assumed office just last week, President Lee has prioritized economic revival by establishing an emergency economic taskforce with government representatives. The economy experienced a downturn in the first quarter due to sluggish exports and consumption, fueled by apprehensions about the effects of U.S. tariffs, which have heightened predictions for interest rate cuts.

If finalized, this additional budget under Lee's administration would supplement the previous 13.8 trillion won ($9.7 billion) budget approved earlier in May. During his campaign, Lee highlighted the necessity of an extra budget for short-term economic stimulation. In a taskforce meeting, he also demanded strategies for price stabilization, citing the rising cost of living exacerbated by higher prices for essentials such as instant noodles, chicken, and eggs, impacted by Brazil's avian flu outbreak. Lee anticipates implementing fiscal expansion policies, despite concerns over escalating debt, to propel economic growth through increased subsidies and welfare.

(With inputs from agencies.)