President Lee Jae-myung on the 2nd, regarding the energy supply crisis caused by the Middle East war, said, "If we save even a single drop of oil, do not waste even a single plastic bag, and add the will to care for one another and overcome this together, we will be able to exit the tunnel of crisis safely and swiftly."
After Minister Kim Sung-hwan of the Ministry of Climate, Energy and Environment (MCEE) the previous day mentioned the possibility of a "purchase limit per person for volume-based fee bags," and Cheong Wa Dae explained that "it is not true," the president personally called for saving plastic in a policy address to the National Assembly the following day. Cheong Wa Dae's position is that while there are differences in supply and demand among local governments, there is no problem with the national total.
In a policy address to the National Assembly this afternoon, the president explained the government's supplementary budget plan totaling 26.2 trillion won (25.2 trillion won in tax revenue; 1 trillion won in Government Bonds repayment) and asked for the Assembly's cooperation. The president said, "The current crisis is not a brief shower that falls and stops, but a massive storm that may last for an unknown period," adding, "That is why it is all the more a crisis."
Regarding recent mentions by both the United States and Iran of the possibility of ending the war, the president said, "Even if the war were to end tomorrow, it would inevitably take a considerable period until the destroyed energy infrastructure in the Middle East is restored and smooth supply and demand as before are achieved," adding, "Since we do not know when the crisis will end, we must overcome the current crisis with a long-term perspective and steady resolve, and prepare for tomorrow."
The president said, "Above all, we need the united strength of all our people. It is more urgent than ever to share the pain and have the mindset to overcome the crisis together," asking people to join in conserving petroleum products and plastics. The president also said, "Starting with the government and public officials, including myself, we will take the lead with an extraordinary resolve."
In particular, regarding the supply of naphtha, a material for volume-based fee bags, the president said, "We will build a robust supply chain by expanding support for naphtha supply—the 'rice of the petrochemical industry'—and for oil stockpiles, and we will establish a fair oil distribution order through disclosure of oil price information and thorough monitoring of illegal activities."
The president also warned of a tough response to unjust gains. The president said, "We will respond strictly under a zero-tolerance principle to acts that exploit the community's crisis for unjust profits, such as collusion and hoarding," and added, "We earnestly ask all citizens to actively participate in practicing energy conservation in daily life, such as using public transportation and saving electricity at home."
◇"war supplementary budget" 25.2 trillion in fiscal expenditure and 1 trillion in Government Bonds repayment
The scale of the supplementary budget the government submitted to the National Assembly is 26.2 trillion won. Of this, fiscal expenditure is 25.2 trillion won and Government Bonds repayment is 1 trillion won. It is the first so-called "debt-repaying supplementary budget" in five years since 2021. At that time, the Moon Jae-in administration arranged a 34.9 trillion won supplementary budget for responding to the COVID-19 crisis and repaid 2 trillion won in Government Bonds.
The funding sources for the supplementary budget and Government Bonds repayment are corporate tax and the security transaction tax, which were collected more than expected. The government's projected corporate tax revenue for this year is 101.3 trillion won, and the security transaction tax is 10.6 trillion won. These figures were assumed on the expectation that each would come in 14.3 trillion won and 5.1 trillion won more than initially forecast. The government also expected that The Special Tax for Rural Development, which is levied on transactions, would be collected more than expected by over 5 trillion won to reach 13.6 trillion won.
Of the 25.2 trillion won, ▲9.7 trillion won goes to local governments ▲5 trillion won goes to compensating refiners for losses from the oil price cap system ▲4.8 trillion won is used to provide high oil price relief payments of 100,000–600,000 won per person to the bottom 70% by income. In addition, 1.1 trillion won will be injected to support export corporations struggling due to the Middle East situation.