Supplementary budget passes the National Assembly, the Democratic Party keeps its promise - Consumption coupons expected to be pre-paid in the first round this month.

Supplementary budget passes in the National Assembly

July 4, 2025, at 10:55 PM. The National Assembly's main chamber began to move after a long silence. The session, originally scheduled for 2 PM, was delayed by more than 9 hours, and the first supplementary budget bill since the launch of the Lee Jae-myung administration finally passed after a prolonged struggle. The core belief was simple: the budget for the people's livelihood should not be hindered by political strife. The Democratic Party made a decision for the people's welfare even amid the opposition's boycott, and the ruling party silently bore that responsibility.

The People Power Party's 'Leg Holding'

The recent supplementary budget proposal focused on urgent livelihood issues such as nationwide consumer coupons, recovery of the regional economy, and support for rural and fishing communities. However, the People Power Party walked out just before the plenary session, raising the issue of restoring the presidential office's special activity funds. They criticized the Democratic Party for 'double standards,' claiming that they cut the special activity funds of the Yoon Suk-yeol administration last year. Yet, the 4 billion won in special activity funds requested by them in the budget and settlement special committee was quietly included. The People Power Party prioritized political strife over people's livelihoods. The Democratic Party continued discussions and efforts to persuade them while waiting for their return, but ultimately, the opposition party left the plenary session, and the ruling party processed the budget proposal alone.

The essence of the special activity expense controversy

The controversy over special activity expenses raised by the People Power Party was a political offensive that ignored the substance and context. The special activity budget submitted by the Yoon Seok-yeol government in 2024 was completely cut due to the failure of the Presidential Office, the prosecution, and the police to clarify their usage details to the National Assembly. This was a result of rejecting transparency and was an unavoidable measure. In contrast, the special activity expenses of the Lee Jae-myung government had no execution history at the initial stage of its launch and were only temporarily allocated for six months. Notably, regarding the prosecution's special activity expenses, it was specified that they would only be executed after the completion of prosecutorial reform legislation, and they were set to be operated restrictively under the approval of the Minister of Justice. This is not unconditional allocation, but a restoration of a limited budget that is subject to procedures and control conditions.

The meaning of 'conditional execution' of prosecution special activity expenses

The Democratic Party has adhered to the principles of transparency and control, rather than an unconditional opposition to special activity expenses. The decision to attach conditions to the prosecution's special activity expenses is an extension of that principle. The explicit condition of 'implementation after the passage of the prosecution reform bill' carries more significance than simply passing a budget. It reflects a will to formally institutionalize the control of power agencies, clearly distinguishing it from past opaque operations. This measure is not about political flexibility but a strategic judgment to shoulder the responsibilities of governance as the ruling party. It is a time to prepare for systematic reform rather than seeking immediate effects.

Finally Secured the Livelihood Budget

The total amount of the supplementary budget has increased by 1.3 trillion won compared to the government's proposal, reaching 31.8 trillion won. The Democratic Party has focused on expanding practical livelihood budgets while the opposition parties engage in political strife. The livelihood recovery consumption coupons have been increased by 1.9 trillion won compared to the government plan, and an additional support of 30,000 won for residents in non-capital and population decline areas has been included. To alleviate the burden on local finances, the national subsidy rate has been raised from 70% to 75% for Seoul and from 80% to 90% for other regions. The government plans to distribute the first consumption coupons within this month and to provide an additional 100,000 won to 90% of the entire population within two months.

Customized support for economic vitality and regional balance

This supplemental budget also includes strategies for economic recovery to boost the economy. An additional 42.6 billion won has been allocated to the AI and climate response new industry sectors, expanding investments in future industry foundational technologies such as physical AI, high-voltage transmission technology, and high-efficiency solar cells. The number of weekly activity services for individuals with developmental disabilities will be increased by 3,000, providing a total of 15,000 services. The customized care allowance for severely disabled individuals has been raised threefold. Childcare fees for infants aged 0 to 2 and disabled infants have been increased by 5%, amounting to an additional 113.1 billion won, and in the agricultural and fishing sectors, effective support areas include a budget of 102.1 billion won for domestic soybean stockpiling and 300 billion won for youth farmer policy funding.

Where did the funding come from?

Among the 2.4 trillion won needed for this supplementary budget increase, 1.1 trillion won has been secured through existing expenditure adjustments. Fund contributions, international development cooperation projects, and bid differentials have been re-evaluated and reasonably reduced, while the remaining 1.3 trillion won will be secured through the issuance of national bonds. As a result, total expenditures will expand to 703.3 trillion won, and the fiscal deficit ratio compared to GDP will slightly increase to 4.2%, while the national debt ratio will rise to 49.1%. However, this is an unavoidable investment for the recovery of people's livelihoods and the economic leap forward.

It is now the time for action.

The government will finalize the supplementary budget allocation plan at the Cabinet meeting on the 5th and immediately begin execution. A task force from the relevant ministries will coordinate the payment schedule, including consumer coupons for recovery, with high-efficiency appliance rebates starting from the end of August, and debt adjustment support expected to be implemented from September through the new start fund. Local love gift certificates will be issued starting in September with an increase in the discount rate. All these measures constitute a concrete and practical recovery strategy for the working class and small business owners suffering amidst economic downturn.

Conclusion: There were political disputes, but the ruling party bore the responsibility.

The first supplementary budget proposal of the Lee Jae-myung government was passed with difficulty amid political tensions and disputes, but in the process, the Democratic Party demonstrated its commitment to both the responsibility of national governance and the resolution of livelihood recovery. We focused on what needed to be done as the ruling party, including conditional execution of special expenses, ensuring transparency in budget preparation, and supporting economic revitalization and vulnerable groups. On the other hand, the People Power Party was trapped in a political dispute frame and rejected the vote in the plenary session, exhibiting a contradictory attitude by denying budget items they had previously demanded. Politics should be evaluated by results, and responsibility is revealed through actions, not words. The changes that people experience begin after the budget is passed. The Democratic Party of Korea has taken the first step toward that change. While politics continues, national governance must not come to a halt. And we have not stopped.