South Korean President Lee Jae-myung urged officials on Monday to quickly prepare a supplementary budget plan to support economic recovery and boost consumption, his office said.
Lee, who took office last week, has made economic recovery a top priority and launched an emergency economy taskforce with government officials.
The economy contracted in the first quarter as exports and consumption slowed amid worries over U.S. tariffs, raising hopes for interest rate cuts. If approved, the new supplementary budget would add to an earlier 13.8 trillion won ($9.7 billion) package passed on May 1.
During his election campaign, Lee emphasized the need for extra budget measures to provide short-term economic stimulus. At Monday’s taskforce meeting, he also called for steps to stabilize prices, saying the rising cost of living is causing “too much pain.”
Lee specifically mentioned higher prices for instant noodles. A vice finance minister told Lee that prices for chicken and eggs have risen following an avian flu outbreak in Brazil. The government has limited chicken imports from affected areas in Brazil.
Lee, who is left-leaning, is expected to pursue policies of fiscal expansion, including increased cash subsidies and welfare, to boost growth despite concerns about rising debt levels.
