South Korea Unveils Emergency Budget Amidst Forest Fire Crisis and Economic Challenges

South Korea is set to propose a supplementary budget to combat the effects of severe forest fires and declining economic growth. The nation faces additional challenges with looming U.S. tariffs and reduced growth forecasts, prompting monetary policy adjustments from the central bank.

In response to unprecedented forest fires and economic downturn, South Korea plans to present a 10 trillion won supplementary budget to its parliament. The finance minister, Choi Sang-mok, announced the urgent measure during a policy meeting, emphasizing the necessity for swift parliamentary approval to manage the crisis effectively.

The devastating fires have scorched 48,000 hectares and led to 75 casualties, raising urgent calls for national reforms. Additionally, South Korea faces economic pressures from impending U.S. tariffs affecting major export sectors like chips, pharmaceuticals, and automobiles, challenging the export-driven economy.

In light of these adversities, the Bank of Korea has revised its economic strategies, cutting interest rates by 25 basis points and reducing growth forecasts. The economy's growth remains stagnant, with minimal expansion reported in the last quarter and lowered projections for 2025.

(With inputs from agencies.)