The Democratic Party of Korea and the People Power Party will keep the size of the supplementary budget bill that the government submitted to the National Assembly at the existing 26.2 trillion won. While many opinions called for increases during the National Assembly's review, they decided not to expand the supplementary budget in light of the fiscal situation. Increases for some projects will be made within the range of offsets.
Floor leader Han Byung-do of the Democratic Party and floor leader Song Eon-seog of the People Power Party announced the "Agreement on the first supplementary budget for 2026" at the National Assembly on the afternoon of the 10th.
First, the ruling and opposition parties agreed to maintain the government's 26.2 trillion won supplementary budget by funding increases within the offset range. Projects to be increased within the offset range are: ▲ 200 billion won in support to ease the burden on farmers and fishers due to high oil prices ▲ 100 billion won in temporary discounts for the K-Pass to promote public transportation use ▲ 200 billion won to stabilize the supply of naphtha, among others.
The agreement also includes revising the Enforcement Decree of the Passenger Transport Service Act to temporarily allow fuel price-linked subsidies for chartered buses. Fuel price-linked subsidies are government subsidies provided to cargo trucks, route buses, and taxis, and chartered buses are currently excluded.
Earlier, standing committees of the National Assembly and the Special Committee on Budget & Accounts reviewed the supplementary budget bill and presented numerous opinions calling for increases. However, some projects were somewhat removed from the supplementary budget's purpose of "responding to the Middle East war," and there were criticisms that the fiscal burden had grown compared with the government and the presidential office emphasizing a "debt-free supplementary budget."
Floor leader Han Byung-do said, "When there is a national crisis due to the Middle East war, the ruling and opposition parties must put their heads together," adding, "The opposition also argued fiercely, but floor leader Song Eon-seog ultimately built consensus that we must come together for the national interest in a time of crisis, and I highly appreciate that."
Floor leader Song Eon-seog said, "Since there are parts necessary for the people's livelihoods, I think it is the right stance for the opposition to process the agreement for the national interest and livelihoods."
The "high oil price relief payments" promoted by the government will be kept as originally proposed with no cuts. The program provides 100,000 to 600,000 won to 70% of the public, and the supplementary budget bill allocates 4.8199 trillion won in national funds.
At the National Assembly level, "fuel price-linked subsidies for agricultural machinery" will be newly established. The related budget is included in the 200 billion won in support to ease the burden on farmers and fishers due to high oil prices. Lee So-young, the Democratic Party lawmaker serving as the ruling party's secretary on the budget committee, explained, "Agricultural machinery uses a lot of fuel, and there was criticism that it fell into a blind spot in the government's proposal."
Short-term job programs included in the supplementary budget bill will be cut within a reasonable range. The "support program to boost marketing for attracting inbound tourists," which drew controversy as the "Chinese porter service budget," will see some funds adjusted and its purpose changed to "attracting tourists from the Chinese-speaking world."