South Korea’s new President Lee Jae Myung on Thursday appealed to lawmakers to approve a 30.5 trillion won ($22.5 billion) supplementary budget to address the country’s deepening economic woes, marking his first address to parliament since taking office.
Lee assumed the presidency earlier this month following the impeachment of former President Yoon Suk Yeol, who was ousted after his controversial declaration of martial law in December.
Speaking in the National Assembly, Lee urged swift legislative action to stem an economic downturn exacerbated by a trade spat with the United States and prolonged domestic stagnation.
“Timing is everything when it comes to the economy, and now is the time to act,” Lee said, adding that the budget would be focused on boosting consumption and restoring household incomes.
The proposed stimulus includes universal consumption coupons, with individuals eligible to receive up to 520,000 won ($380). Over 40 percent of the funds would be allocated to direct support measures.
“This is the minimum my government can do to breathe life into the economy,” Lee stated, noting that growth has remained below 1 percent for four consecutive quarters and fell into negative territory earlier this year.
Lee’s party, the centre-left Democratic Party, holds a majority in the 300-seat legislature, making passage of the proposal likely.
He also reaffirmed his commitment to dialogue with North Korea, linking peace on the Korean Peninsula to long-term economic prosperity.
“I will create a virtuous cycle where peace drives economic growth, which in turn further strengthens peace,” Lee said.
The president’s tenure begins as South Korea navigates tensions between its key security ally, the United States, and its largest trading partner, China, with geopolitical risks weighing heavily on investor sentiment and trade flows.
