---
title: "South Korea considers extra budget in early 2025 to boost spending"
description: "South Korea plans a supplementary budget for early next year to address declining consumer spending and economic growth. President Yoon Suk Yeol's administration, focused on fiscal discipline, has only allocated an extra budget once since 2022. The proposed budget for 2025 aims for a 3.2% increase in government expenditure, slightly higher than this year's smallest boost since 2005. Economic conditions have shifted significantly, prompting the need for increased domestic support and efforts to reduce inequality."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-11-22-south-korea-considers-extra-budget-in-early-2025-to-boost-spending/"
published: "2024-11-22T02:37:19"
updated: "2024-11-22T02:37:22"
lang: "en-ZA"
word_count: 180
---

# South Korea considers extra budget in early 2025 to boost spending

> South Korea considers extra budget in early 2025 to boost spending

By Reuters · Published 22 November 2024, 04:37 SAST · Updated 22 November 2024, 04:37 SAST

## Key points
- As South Korea grapples with a consumer spending slump and economic growth that’s slower than a snail on a treadmill, President Yoon Suk Yeol's administration is contemplating a supplementary budget to sprinkle some fiscal fairy dust on the nation's finances—because who doesn’t love a little extra spending when the going gets tough?
- South Korea plans a supplementary budget for early next year to address declining consumer spending and economic growth.
- President Yoon Suk Yeol's administration, focused on fiscal discipline, has only allocated an extra budget once since 2022.
- The proposed budget for 2025 aims for a 3.2% increase in government expenditure, slightly higher than this year's smallest boost since 2005.
- Economic conditions have shifted significantly, prompting the need for increased domestic support and efforts to reduce inequality.

## Content

South Korea is considering drawing up a supplementary budget early next year to counter the slumping consumer spending and slowing economic growth, the Chosun Ilbo daily reported on Friday, citing an unnamed presidential official.

President Yoon Suk Yeol's administration has prioritised fiscal discipline amid dwindling tax revenue and allocated an extra budget only once shortly after he took office 2022.

But the government sees the need for additional expenditures to boost domestic demand, support underprivileged people and curb income and educational inequality, the report said, quoting the official as saying that economic circumstances at home and outside have changed significantly since the government drafted its 2025 spending plan in August.

Under the proposal, the finance ministry set next year's total government expenditure at 677.4 trillion won ($484.3 billion), up 3.2% from 2024. It marks a slightly bigger increase than this year's smallest boost since 2005, at 2.8%, but less than the 4.2% previously projected.

Yoon's office did not immediately respond to a request for comment on the report.

($1 = 1,398.7700 won)

(Reporting by Hyonhee Shin; Editing by Stephen Coates)