South Korea’s President Calls for Quick Budget to Boost Economy

Intermediate | June 12, 2025

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President Lee’s Urgent Economic Plan

A Quick Call for Action on the South Korea Supplementary Budget

South Korean President Lee Jae-myung recently urged government officials to quickly prepare a South Korea supplementary budget plan. This request was made on June 9th, shortly after he took office. His main goal is to support the country’s economic recovery and encourage people to spend more money, which helps businesses.

Reasons Behind the Struggles

The President’s call comes because the South Korean economy has been struggling. In the first three months of 2025, the economy actually shrank a little. This was partly because exports, which are goods sold to other countries, and consumption, meaning people buying things, were not growing. Domestic demand, which is spending inside the country, has been weak, and there are still challenges with jobs in some parts of the economy.

Addressing Challenges and Looking Ahead

Previous South Korea Supplementary Budget

This isn’t the first time South Korea has used a South Korea supplementary budget recently. A budget of 13.8 trillion won (about 9.7 billion US dollars) was approved on May 1st. That earlier budget was planned to help with things like responding to disasters, improving competitiveness in trade and technology like AI, and supporting people’s livelihoods. The new budget President Lee is asking for would be an additional plan.

Tackling Rising Living Costs

President Lee also highlighted another important issue: the rising cost of living. He said that increasing prices are causing “too much pain” for people. Addressing inflation and making things more affordable is also a key part of his focus.

The President’s Hopes

Overall, the new president faces a challenging economic situation. By pushing for a swift South Korea supplementary budget, he hopes to provide a quick boost to the economy, stimulate growth, and help restore confidence among businesses and the public. The task force he launched is now working on these measures.

Vocabulary

Urge (verb): To strongly advise or encourage someone to do something.
Example: “The teacher will urge the students to study hard for the test.”
Swift (adjective): Happening or moving quickly or without delay.
Example: “The company took swift action to fix the problem.”
Supplementary budget (noun phrase): An additional government budget created during the financial year to deal with unexpected expenses or stimulate the economy.
Example: “The government approved a supplementary budget to fund disaster relief.”
Economic recovery (noun phrase): A period of increased economic activity after a recession or downturn.
Example: “Signs of economic recovery are starting to appear.”
Consumption (noun): The act of buying and using goods and services.
Example: “Consumer consumption is an important part of the economy.”
Stalled (adjective/verb): Having stopped or slowed down; prevented from happening or progressing.
Example: “The negotiations stalled after the first meeting.”
Tariffs (noun): Taxes on goods coming into or going out of a country.
Example: “New tariffs were placed on imported cars.”
Contracted (verb): To decrease in size, number, or amount.
Example: “The economy contracted in the last quarter.”
Sluggish (adjective): Slow-moving or inactive.
Example: “The market has been sluggish this week.”
Vulnerable sectors (noun phrase): Areas of the economy or groups of people that are easily harmed or affected by economic difficulties.
*Example: “Small businesses are often considered vulnerable sectors during a recession.”

Discussion Questions (About the Article)

What did South Korea’s President Lee Jae-myung ask officials to do on June 9th?
Why is the South Korean economy facing difficulties, according to the article?
What is a supplementary budget, and has South Korea had one recently?
Besides the economy, what other issue did President Lee mention as causing “too much pain”?
What is the main goal of the proposed swift budget plan?

Discussion Questions (About the Topic)

How do governments use budgets to help the economy?
What are some common ways an economy’s growth is measured?
Why might a country’s domestic demand become sluggish?
How can international trade issues, like tariffs, affect a country’s economy?
What are the potential challenges of introducing a supplementary budget?

Related Idiom

“Boost the economy”
Meaning: To stimulate or improve economic activity.
Example: The government hopes the new budget will “boost the economy.”

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This article was inspired by: Reuters, June 9, 2025.