President Lee Jae-myung's promised livelihood support fund during the presidential election will increase slightly. Initially, the government planned to provide between 150,000 won and 500,000 won based on income, with an additional 20,000 won for areas affected by population decline in rural and fishing communities. However, during the National Assembly discussions, it was changed to provide an extra 30,000 won for non-metropolitan regions and 50,000 won for areas experiencing population decline.
On the 4th, the National Assembly processed the supplementary budget for the second time in 2025, which included this content, during a plenary session. The size of the supplementary budget that passed on this day reached 31.8 trillion won, an increase of 1.3 trillion won compared to the initial government plan (30.5 trillion won). The government plans to raise funds by issuing additional Government Bonds equivalent to the increased amount.
In the review process of the supplementary budget, the government subsidy rate for recovery consumer coupons was significantly increased. With the increase in support for non-metropolitan and population decline areas, a total of 2.4 trillion won was added. Additionally, considering the possibility of execution within the year and changes in international circumstances, the budget was reduced by 1.1 trillion won.
With the formation of the second supplementary budget, the government's total expenditure will reach 703.3 trillion won, a 7.1% increase from the previous year. The consolidated fiscal balance without social security fund deficit will expand from 3.3% to 4.2% of Gross Domestic Product (GDP). The government debt ratio to GDP will rise from 48.4% to 49.1%.
The government subsidy rate for recovery consumer coupons will be significantly increased compared to the initial government plan. In Seoul, the subsidy rate will rise from 70% to 75%, a 5 percentage point increase. In other local governments, the subsidy rate will increase from 80% to 90%, a 10 percentage point increase.
The additional support for non-metropolitan areas, which was not included in the government plan, was raised to 30,000 won during National Assembly discussions. The additional support for rural and fishing areas experiencing population decline was increased from 20,000 won to 50,000 won.
Investments in new industries such as artificial intelligence (AI) and climate response have also been expanded. A budget of 42.6 billion won has been allocated for the design and demonstration of a physical AI leading model, as well as support for technology development in new industries, including high-voltage transmission technology (6 billion won) for the early establishment of an energy expressway on the west coast and highly efficient next-generation solar cells (1 billion won).
Additionally, the support amount for childcare for children aged 0 to 2 and disabled infants has been increased by 5%. The budget increase due to the rise in childcare support amounts to 116.1 billion won.
In the agricultural and fishing sectors, a budget of 100 billion won has been allocated for expanding the stockpile of domestic beans by 20,000 tons. The discussion in the National Assembly also included expanding funding for policy funds for young farmers and support for expenses needed for export corporations to develop overseas markets.
On the other hand, adjustments were made to reduce the fund projects (three projects, -160 billion won) and Official Development Assistance (ODA) projects (three projects, -7.4 billion won).
The government plans to hold a temporary cabinet meeting on the morning of the 5th to present and vote on the second supplementary budget for 2025. A Ministry of Economy and Finance official noted that 'the confirmed budget will be swiftly executed within the year to stabilize the livelihoods of the financially struggling and vulnerable populations and restore the virtuous cycle of the economy.'