South Korea's Bold Economic Leap: $14.7 Billion Extra Spending to Boost Growth

South Korea's new government, under President Lee Jae Myung, has announced a significant economic stimulus package worth $14.7 billion to invigorate domestic demand and foster economic recovery. The proposal is part of a larger supplementary budget totaling 30.5 trillion won, which aims to address various economic challenges.

The extra spending plan includes substantial allocations to support vulnerable sectors and counterbalances an anticipated tax revenue shortfall amounting to 10.3 trillion won. This is the second supplementary budget unveiled this year, following Lee's victory in the snap presidential election on June 3.

Key features of the spending plan entail a universal cash handout scheme for citizens, substantial investments in artificial intelligence, and financial backing for small and medium-sized enterprises. The initiative will result in a fiscal deficit increase to 4.2% of GDP and anticipates additional treasury bonds issuance to fund the spending.

(With inputs from agencies.)