Another extra budget could reach some 30 tln won: finance minister

All News 10:27 June 23, 2021

SEOUL, June 23 (Yonhap) -- Another extra budget under review to support the pandemic-hit people may reach some 30 trillion won (US$26.5 billion), the country's chief economic policymaker said Wednesday.

The government is planning to create this year's second extra budget with excess tax revenue as it seeks to underpin an economic recovery and minimize the fallout of the pandemic.

Finance Minister Hong Nam-ki told a parliamentary meeting that another extra budget would be below some 32 trillion won, which is roughly equal to the excess tax revenue estimated for this year.

South Korea is estimated to log a surplus in tax revenue this year amid an economic recovery and a bull run in the property and stock markets.

In the first quarter, the country collected 88.5 trillion won in tax revenue, up 19 trillion won from a year.

Hong earlier said the government plans to repay part of the country's national debt with the larger-than-expected tax revenue when it draws up the supplementary budget.

South Korea created an extra budget of 14.9 trillion won in March to finance the 20.7 trillion-won relief aid for smaller merchants and vulnerable people hit hard by the pandemic.

The minister also affirmed that the government is not considering providing stimulus checks to all households, voicing opposition to the ruling Democratic Party's push for another universal support.

The country offered 14.3 trillion won in one-off emergency cash handouts to all households in May last year. It has so far provided three rounds of targeted support to smaller merchants and vulnerable groups.