South Korea announced a 26.2 trillion won ($17.3 billion) supplementary budget
to cushion its economy from the impact of the Iran war, rising oil prices and
global supply disruptions. The package allocates 10.1 trillion won to fuel cost
relief including price caps, 2.8 trillion won for vulnerable households and
labor support, and 2.6 trillion won for industries hit by higher logistics and
energy costs, with additional funds for local governments and debt repayment.
The stimulus will be largely funded by stronger-than-expected tax revenues, with
fiscal deficit projected at 3.8% of GDP and debt ratio at 50.6%.
