(EDITORIAL from Korea JoongAng Daily on April 1) | Yonhap News Agency

## Summary
OK 'War budget' of 26 trillion won must be targeted and timely The government on Tuesday approved and submitted to the National Assembly a supplementary budget totaling 26.2 trillion won ($17.2 billion), the second extra budget under the Lee Jae Myung administration, aimed at mitigating the economic shock from the Middle East war. The plan allocates 4.8 trillion won to provide relief to the tune of 100,000 to 600,000 won per person to households in the bottom 70 percent of income earners, covering 32.56 million people, to combat rising oil prices. It also earmarks 5.1 trillion won to ease fuel and transportation costs, including 4.2 trillion won to compensate for losses from a cap on oil prices. If this trend continues, the financial burden on households, small business owners and the self-employed is likely to grow. (END) Keywords #editorials Articles with issue keywords Most Liked (2nd LD) Han Kang's 'We Do Not Part' wins NBCC Award for haunting portrayal of trauma Paik Kun-woo, at 80, says 'Music chose me' (Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot (News Focus) Han Kang's NBCC win again spotlights art of translation (LEAD) BTS scores 7th No. 1 album on Billboard 200 with 'Arirang' Most Saved (2nd LD) Han Kang's 'We Do Not Part' wins NBCC Award for haunting portrayal of trauma (News Focus) Han Kang's NBCC win again spotlights art of translation Paik Kun-woo, at 80, says 'Music chose me' (Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot Liberal ex-prime minister to declare mayoral bid in conservative stronghold Most Viewed All Categories (LEAD) Lee urges bold measures to cope with concerns about energy situation, including emergency economic decree if needed (News Focus) With 'Arirang,' BTS proves endurance beyond long break Gov't proposes 26.2 tln-won extra budget to cushion impact of Middle East tensions Korean Air to enter emergency management mode over soaring fuel costs Declassified documents show N.

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OK
'War budget' of 26 trillion won must be targeted and timely
The government on Tuesday approved and submitted to the National Assembly a supplementary budget totaling 26.2 trillion won ($17.2 billion), the second extra budget under the Lee Jae Myung administration, aimed at mitigating the economic shock from the Middle East war.
The plan allocates 4.8 trillion won to provide relief to the tune of 100,000 to 600,000 won per person to households in the bottom 70 percent of income earners, covering 32.56 million people, to combat rising oil prices. It also earmarks 5.1 trillion won to ease fuel and transportation costs, including 4.2 trillion won to compensate for losses from a cap on oil prices. Additional spending includes 2.8 trillion won for stabilizing livelihoods and 2.6 trillion won to minimize industrial damage and strengthen supply chains. The ruling and opposition parties plan to pass the bill at a plenary session on April 10.
Given the strain on households from the so-called triple burden of high oil prices, a weak currency and inflation, there is some justification for the ruling party's push to move quickly on what it calls a "war budget." Supplementary budgets can be effective when deployed at the right time and in the right place. However, an excessive focus on speed risks undermining their effectiveness.
The size of the package exceeds earlier estimates by 5 trillion to 10 trillion won. The scope of cash-based support has also expanded. With 70 percent of the population eligible for relief payments, critics argue that the program approaches a near-universal cash distribution. If politically motivated or poorly designed projects are included without sufficient scrutiny, the result could be wasteful spending and accusations that the budget is intended to influence voters ahead of the June local elections.
The potential side effects of such a large budget must also be considered. The government has emphasized that the spending will rely on higher-than-expected tax revenue rather than additional bond issuance. Even so, the supplementary budget would increase this year's total budget by 11.8 percent compared with last year. Using excess revenue for immediate spending, rather than saving it or repaying deficit-financing bonds, could reduce fiscal flexibility.
If additional spending becomes necessary in the future, the government may have little choice but to take on more debt. Cash-based support could also add upward pressure on prices and contribute to rising interest rates. Government bond yields have already climbed, pushing the upper range of mortgage rates above 7 percent. If this trend continues, the financial burden on households, small business owners and the self-employed is likely to grow.
(END)
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(EDITORIAL from Korea JoongAng Daily on April 1)
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(EDITORIAL from Korea JoongAng Daily on April 1)

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## Expert Analysis

### Merits
- Given the strain on households from the so-called triple burden of high oil prices, a weak currency and inflation, there is some justification for the ruling party's push to move quickly on what it calls a "war budget." Supplementary budgets can be effective when deployed at the right time and in the right place.
- Korea's strong backlash against growing S.

### Areas for Consideration
- If this trend continues, the financial burden on households, small business owners and the self-employed is likely to grow. (END) Keywords #editorials Articles with issue keywords Most Liked (2nd LD) Han Kang's 'We Do Not Part' wins NBCC Award for haunting portrayal of trauma Paik Kun-woo, at 80, says 'Music chose me' (Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot (News Focus) Han Kang's NBCC win again spotlights art of translation (LEAD) BTS scores 7th No. 1 album on Billboard 200 with 'Arirang' Most Saved (2nd LD) Han Kang's 'We Do Not Part' wins NBCC Award for haunting portrayal of trauma (News Focus) Han Kang's NBCC win again spotlights art of translation Paik Kun-woo, at 80, says 'Music chose me' (Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot Liberal ex-prime minister to declare mayoral bid in conservative stronghold Most Viewed All Categories (LEAD) Lee urges bold measures to cope with concerns about energy situation, including emergency economic decree if needed (News Focus) With 'Arirang,' BTS proves endurance beyond long break Gov't proposes 26.2 tln-won extra budget to cushion impact of Middle East tensions Korean Air to enter emergency management mode over soaring fuel costs Declassified documents show N.

### Implications
- If politically motivated or poorly designed projects are included without sufficient scrutiny, the result could be wasteful spending and accusations that the budget is intended to influence voters ahead of the June local elections.
- The government has emphasized that the spending will rely on higher-than-expected tax revenue rather than additional bond issuance.
- Using excess revenue for immediate spending, rather than saving it or repaying deficit-financing bonds, could reduce fiscal flexibility.
- If additional spending becomes necessary in the future, the government may have little choice but to take on more debt.

### Expert Commentary
This article covers won, budget, trillion topics. Notable strengths include discussion of won. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 690.