South Korea to roll out $17 bn 'wartime' budget to Combat Soaring Energy Costs

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SEOUL: South Korea plans a $17 billion ‘wartime’ supplementary budget to combat surging energy prices caused by the conflict in Iran. The package, funded by excess tax revenue, aims to stabilize the economy and support vulnerable households and small businesses hit by high costs.

Budget minister Park Hong-keun stated the move will ‘ease the burden on citizens’ and ensure a smooth oil price cap system. With the Strait of Hormuz effectively shut, Seoul is also pivoting toward nuclear power and lifting coal generation caps to secure its energy supply.

The ruling Democratic Party is fast-tracking the bill through the National Assembly. President Lee Jae-myung emphasized the urgency of strengthening supply chain resilience, noting that the disruption along key shipping routes has sent domestic fuel prices to historic highs.