South Korean parliament approves supplementary budget to cushion economy from Mideast conflict impact

South Korea’s National Assembly approved a supplementary budget Friday worth 26.2 trillion won ($17.7 billion) to address the economic effect of the Middle East war, 10 days after the proposal was submitted by the government, according to Yonhap News.

The supplementary budget bill was approved during a plenary session in a 214-11 vote, while 19 lawmakers abstained out of 244 members present.

The ruling Democratic Party and the main opposition People Power Party agreed to keep the size of the supplementary budget unchanged from the government’s initial proposal.

They also agreed to include cash assistance for the lowest 70% of income earners to help ease the burden of rising oil prices.

With passage, about 35.8 million people will receive between 100,000 and 600,000 won based on income and region, while an additional 200 billion won will be allocated to ensure a stable naphtha supply for key industries.

"We express our gratitude to the ruling and opposition parties for swiftly passing the bill through bipartisan cooperation that placed national interests first in the face of the crisis caused by the Middle East war," presidential spokesperson Kang Yu-jung said in a statement.

Following the passage, the government will swiftly roll out support measures, including aid for naphtha purchases, public transport discounts, and fuel subsidies for farmers and fishermen affected by high oil prices, said the spokesperson.

Last week, South Korean President Lee Jae Myung called the situation created by conflict in the Middle East "wartime-level," urging lawmakers to pass an extra budget of $17.1 billion swiftly.

Addressing parliament, Lee described the situation as an "unexpected, multifaceted" crisis for South Korea as the US-Israeli war with Iran continued into its fifth week.

South Korea issued a second-level national energy security alert due to disruptions in its oil supplies. Lee, separately, also directed officials to prepare traffic control measures as part of energy-saving steps.

Seoul's imports of crude oil through the Strait of Hormuz have been suspended for more than 10 days since the waterway’s effective closure on March 1. The last tanker from the strait arrived in South Korea on March 20.