Speaking before the National Assembly, President Lee Jae Myung emphasized that the government is making comprehensive efforts to overcome the difficult situation, and warned that this is not a short-term shock that could last. He called on lawmakers to quickly pass the budget plan.
Oil prices fluctuated sharply in the context of the US-Israel war with Iran, increasing the risk of inflation and slowing growth in South Korea, a country heavily dependent on crude oil imported from the Middle East, accounting for about 70% of total supply.
The disruption of the Strait of Hormuz further affects energy prices, affects the global economy and directly affects energy importing countries such as South Korea.
The Seoul government has applied fuel price ceilings to reduce pressure on the domestic energy market, marking the first implementation of this measure since 1997. At the same time, the Ministry of Energy issued guidelines calling on people to save energy, including shortening bathing and charging electrical appliances during the day.
President Lee Jae Myung also called on people to actively participate in saving measures such as using public transport and reducing electricity consumption.
Two major parties in South Korea agreed to hold a vote on the budget bill on April 10.
This additional budget package includes a support package of 4,8 billion won (approximately 9,000 billion VND) for cash allowances, with levels ranging from 100,000 (approximately 1.85 million VND) to 600,000 won (approximately 11 million VND) per person, applicable to 70% of people with lower incomes.
The plan also allocates 2,800 billion won (approximately 52,000 billion VND) to support young people and low-income groups, and 2,600 billion won (approximately 48,000 billion VND) to businesses affected by the Middle East crisis.
