The government designated 12 trillion won out of the 13.8 trillion won supplementary budget for prompt execution management. The policy aims to execute 70% of the total supplementary budget within 3 months and to complete the execution by the end of the year.
On the 7th, the government approved the ’2025 supplementary budget execution plan' during the economic ministers' meeting chaired by Acting Minister of Economy and Finance Kim Beom-suk.
The government plans to focus on managing budgets in key areas such as ▲ disaster and emergency response ▲ enhancing competitiveness in trade and AI ▲ supporting livelihoods. Contingency funds (1.4 trillion won), local government bond acquisitions (200 billion won), and repayment of national debt interest (200 billion won) are excluded from the execution management targets.
The government plans to execute 54% of the disaster and emergency response budget (1.7 trillion won) by the end of July. This month, it will allocate 600 billion won to local governments for disaster relief funds, support for residents, facility repair costs, and disaster waste treatment, and will also swiftly pursue remaining projects such as the introduction of forest helicopters and expansion of forest roads to ensure full execution by the end of the year.
For budget allocation of 4.3 trillion won aimed at responding to trade risks and enhancing artificial intelligence competitiveness, 88% of the budget is expected to be executed by July. After purchasing graphic processing units (GPUs), the implementing agencies for the projects benefiting the national project and AI ecosystem will be selected this month. The export voucher program will also select supported corporations starting next month and will begin providing funding.
The livelihood support budget (5.1 trillion won) aims to execute 65% by the end of July. To alleviate the burden on the working class and small businesses, the government will provide credits that can be used for paying utility bills and insurance premiums starting in July. It plans to support credits for over 3 million people by the end of the year. The issuance support for regional love gift certificates is expected to be allocated to local governments in June after demand surveys.
The government has designated the next 3 months as a ‘focused management period’ and plans to continuously monitor execution status through financial execution review meetings chaired by the Deputy Minister of Economy and Finance.
Meanwhile, this supplementary budget was prepared for disaster and emergency response such as forest fires, enhancing trade and artificial intelligence (AI) competitiveness, and supporting livelihoods. The supplementary budget proposal was approved in the National Assembly’s plenary session on the 1st, 11 days after the government submitted its proposal. This is the fastest period in the last 20 years. Initially, the government proposed a supplementary budget of 12.2 trillion won, but it was finalized at 13.8 trillion won after an increase of 1.6 trillion won during the National Assembly review process.