Seoul [South Korea], April 2 (ANI): South Korean President Lee Jae Myung on Thursday called on the country's National Assembly to quickly pass a KRW 26.2 trillion (approximately USD 17.1 billion) supplementary budget, aimed at cushioning the economic impact of the ongoing conflict in the Middle East, Yonhap News Agency reported.

According to the Yonhap News Agency, during the budget address, Lee described the situation as an 'unexpected, multifaceted crisis' as the US-led war involving Iran enters its second month, stressing that extraordinary steps are necessary to stabilise the economy.

'The government recognises the current situation as a wartime-level crisis for the people's economy and is mobilising all available resources to overcome it,' he said, as quoted by Yonhap News Agency.

Lee highlighted that disruptions in global energy supply--particularly due to virtual blockades around the Strait of Hormuz--have significantly pushed up fuel prices and warned of shortages in critical industrial inputs such as naphtha and urea, which could affect sectors ranging from petrochemicals to fertilisers.

To mitigate the impact, the proposed budget includes over KRW 10 trillion to offset rising oil costs and KRW 5.1 trillion to sustain a fuel price cap system and ensure a stable supply of key raw materials. The government also plans to strengthen stockpiling measures and improve transparency in fuel pricing and distribution.

According to Yonhap News Agency, the major component of the package is KRW 4.8 trillion earmarked for direct financial support to nearly 35.8 million citizens, primarily targeting the lower 70 per cent of income groups.

Payments will range between KRW 100,000 and KRW 600,000, depending on income level and regional factors.

Lee said the proposal aims to protect vulnerable populations while preventing a slowdown in economic recovery, adding that the plan will be funded through increased tax revenues driven by strong stock market performance and the semiconductor industry, without issuing new government bonds.

'It is designed to make bold investments where needed in the wake of the Middle East crisis, while ensuring the burden is not passed on to the public or the broader economy,' he said, as quoted by Yonhap News Agency.

The ruling party and the main opposition have reportedly agreed to pass the budget bill by April 10, signalling bipartisan urgency in addressing the economic fallout of the ongoing West Asia conflict. (ANI)