South Korea's finance minister expects this year's second extra budget to be above 30t won

[SEOUL] South Korea's Finance Minister Hong Nam Ki said on Wednesday he expected the planned supplementary budget, the second of this year, to be worth more than 30 trillion won (S$35.6 billion).

Earlier this month, Mr Hong said the government was considering drafting a second supplementary budget to safeguard jobs and boost aid for businesses hit by the coronavirus pandemic.

Mr Hong plans to submit the budget plan to parliament by early July, he said.

"Due to the coronavirus pandemic last year, taxes that should have been collected last year have been delayed to this year, which led to excess tax revenue in the first half of the year, and thanks to a swift economic recovery, we expect excess tax revenue this year," Mr Hong said in a parliamentary session.

"If we do not use such excess tax revenue, it will have a tightening effect on the market, so we think it would be desirable to use that to revive the economy and the amount will be over 30 trillion won."

Mr Hong, however, added that the government is not considering cash handouts to all households, but is instead discussing ways to heavily support those hit by the coronavirus pandemic.

REUTERS