S Korea parliament approves 62t won extra budget days before local elections

SOUTH Korea’s National Assembly approved a 62 trillion won (S$68 billion) supplementary budget on Sunday (May 29) aimed at supporting businesses hit by pandemic-related restrictions.

The amount approved was 2.6 trillion won more than the 59.4 trillion won announced last month and will mostly be used for cash handouts for small businesses and self-employed people to make up for losses incurred due to Covid-19 restrictions, the finance ministry said.

The extra budget comes as the country is due to hold local elections on Jun 1, where South Koreans will vote for mayors and provincial governors.

The ministry said in a statement that it would not issue any bonds to fund the budget but instead would use tax revenue from existing spending plans.