Minister of Economy and Finance Choi Sang-mok enters a meeting room at the government complex in central Seoul for an emergency ministerial meeting on March 30. [NEWS1]

 
Korea will push to allocate a supplementary budget of 10 trillion won ($6.8 billion) to economic revitalization in the wake of the worst wildfire in the country’s history.
 
The proposed allocation would fund efforts not only to restore areas impacted by the massive wildfire that swept through the southeastern region of the country over the past 10 days, but also to mitigate trade risks and support small businesses, the Ministry of Economy and Finance said Sunday. The ministry has not yet specified the amounts it would set aside for each respective area.
  

 
The latest development marks a breakthrough in the drive for additional fiscal spending, over which Korea's two major political parties have long been at an impasse amid political tension surrounding President Yoon Suk Yeol's impeachment proceedings.
 
The ministry will submit its supplementary budget plan to the National Assembly swiftly, with a goal of having it approved by the end of April. 
 
The scope of the proposed budget is significantly smaller than what policymakers have previously suggested, likely in an effort to minimize disagreements. The liberal Democratic Party (DP) has been advocating a massive 35 trillion won supplementary budget allocation since February while the conservative People Power Party (PPP) has held firm on the 15 trillion won range. Bank of Korea Gov. Rhee Chang-yong has repeatedly suggested a range between 15 trillion won to 20 trillion won.
  

Democratic Party leader Lee Jae-myung, right, holds hands with people displaced by ongoing wildfires at a gymnasium in Uiseong, North Gyeongsang, on March 27. [JOINT PRESS CORPS]

 
As Korea continues to grapple with weak private spending and waning growth momentum, calls for extra budget have been constantly present throughout the year. The PPP and the DP agreed on the need for additional funding during a four-way consultative meeting with then-acting President Choi Sang-mok and the National Assembly speaker on Feb. 20, but the joint discussion stalled without a clear resolution after the DP excluded the government from further talks over Choi’s decision not to appoint the ninth justice of the Constitutional Court.
 
The discussion picked up momentum again after the massive wildfire broke out, but the PPP and the DP are still locking horns regarding the scope and the approach of the budget plan.
 
The PPP is now arguing that the reserve funds — which the DP cut to 2.4 trillion won from the government’s initial proposal last year — should be restored to 4.8 trillion won, while the DP insists that the current allocation of the reserve funds is sufficient, considering that separate government funding exists for natural disaster relief. The DP has previously suggested that the additional budget include safety funding and a stimulus package to support North Gyeongsang, which was impacted by the wildfire.
  

People Power Party floor leader Kweon Seong-dong, center, holds hands with a woman displaced by ongoing wildfires at a shelter in Andong, North Gyeongsang, on March 27. [NEWS1]

 
“The recent wildfire resulted in record damages, burning 48,000 hectares [118,610 acres] and causing 75 casualties,” said Choi, now minister of economy and finance, during an emergency economic ministerial meeting at the government complex in central Seoul on Sunday.
 
“Meanwhile, the global race for technology leadership in advanced industries such as AI is accelerating, with external trade risks involving the U.S. government’s tariff implementations materializing,” noted the minister, adding that “The burden on household economies will likely increase due to slowing export growth amid weak domestic demand.”
 
Choi called for “prompt additional budget injection,” stressing that the nation should leverage its resources in an all-out effort to navigate such multifaceted risks.
 
“The government aims to create a supplementary budget worth 10 trillion won, focusing only on programs where budgets can be implemented swiftly, in order to address pressing issues,” said Choi.
 
The finance minister repeatedly emphasized the urgency of the situation, urging lawmakers to put aside their differences for a bipartisan effort to pass the additional budget.
 
“If there is any push for projects that the parties cannot agree with or that do not align with the intended purpose of the additional budget during the parliamentary discussion, the review process may drag indefinitely, ultimately undermining the impact of the supplementary measure,” Choi said, requesting that the parties “agree.”