The South Korean government is scheduled to offer a complementary budget of 10 trillion Won ($ 6.8 billion) to Parliament, with the aim of alleviating the economic impact of the worst forest fires in the country, and is able to grow slow in the country.
Speaking at the emergency policy meeting, Choi revealed that destroyed forest fires destroyed 48,000 hectares (120,000 acres) of the ground, which led to 75 victims, and caused widespread damage to property. “We are planning to set an emergency supplementary budget of 10 trillion Won, which we can implement quickly,” said Choi, urging the legislators to approve the package, and urged the legislators to agree to the package before the end of April.
The country faces additional economic pressure, as the United States government is expected to impose, during the era of President Donald Trump, a new tariff targeting the main Korean industries, including semiconductors, medicines, and cars. The expected commercial restrictions constitute a major challenge to the export economy, which increases concerns about economic growth.
In response to the increased economic certainty, Korea Bank recently reduced the standard interest rate by 25 basis points to 2.75 %, indicating a shift from restricted monetary policy to a more neutral position aimed at increasing growth. The central bank also reduced economic growth forecast for 2025 from 1.9 % to 1.5 %, after poor performance in the fourth quarter, when gross domestic product expanded by only 0.1 %.
As the government moves to address both disasters and economic opposite winds, the proposed emergency budget is expected to play an important role in stabilizing the economy in South Korea amid increasing local and international challenges.
