South Korea Approves $23.3B Stimulus Budget Amid US Trade Tensions

South Korea's Parliament passed a 31.8 trillion won ($23.3 billion) supplementary budget, exceeding the government's initial proposal. The MOVE aims to counter economic slowdown risks and shield key industries from escalating US trade tensions. President Lee Jae Myung's administration prioritized direct cash handouts and emergency industry aid in the final bill.

The budget approval comes as Seoul faces a July 9 deadline to resolve differences in the US-Korea Free Trade Agreement revision. Failure could trigger reciprocal tariffs of 25% on Korean exports, potentially devastating automotive, battery, and semiconductor sectors that drive the nation's economy.

Finance Ministry officials emphasized the need for robust support measures against dual threats of domestic stagnation and international trade shocks. The legislation includes a 10.3 trillion won fund to address revenue shortfalls, reflecting heightened economic uncertainty.