Han urges swift passage of extra budget proposal

Acting President and Prime Minister Han Duck-soo delivered a rare budget speech at the National Assembly on Thursday, urging the Democratic Party of Korea-controlled parliament to swiftly pass the government’s 12.2 trillion won ($8.51 billion) extra budget proposal.

“For crisis response, the timing of pursuing (policies) is as important as the content of the policies,” Han said in the first budget speech delivered to the Assembly by an acting leader in 46 years.

“For the people who lost their homes due to (the recent) wildfire crisis, their hopes to restart (their lives) are desperate, while for our industries and companies, securing sustainable competitiveness is urgent to survive in the harsh waves of global competition,” he added.

The government’s supplementary budget proposal aims to allocate over 3 trillion won for natural disaster responses, including helping victims to recover from recent wildfires considered to be the worst on record. Some 4.4 trillion won will also be funneled to bolster the country’s artificial intelligence industry and overall response to trade risks. The remaining 4.3 trillion won will be used to provide financial support measures for small businesses and the protection of the socially vulnerable class.

The budget speech by Han on Thursday marked the first of its kind by an acting president since November 1979, which was delivered to the Assembly by Choi Kyu-hah. Choi had taken on the role of acting president after President Park Chung-hee’s assassination on Oct. 26, 1979. He was then officially elected as president on Dec. 21, 1979.

Thursday’s speech also came amid growing speculations that Han could soon declare a bid for the presidency.

Han pointed to uncertainties stemming from US tariff policy as a key risk for the export-reliant economy.

“At the moment, South Korea is facing major challenges both domestically and externally — the global economy has been drastically shifting due to uncertainties stemming from the US’ unprecedented tariff policy,” he said.

Han also said that the scheduled "two-plus-two" trade consultations with the US in Washington, which were to be held later in the day, would be a venue for the government to seek out “mutual, win-win agreements” in three areas of common interest: trade balance, shipbuilding and liquefied natural gas.

Han's speech came in a mood of heightened tension between the two main parties.

As Han stepped up to the podium, he was met by shouts of "step down" and "acting president of insurrection" from majority lawmakers in the Assembly's main chamber.

After the acting president wrapped up his speech, Assembly Speaker Woo Won-shik asked Han to "sit down for a moment" and expressed hopes for the acting president to "well-distinguish what he should do and not do," indirectly criticizing him for delivering the budget speech. Han listened to Woo's remarks in silence with a frozen expression.

Several People Power Party lawmakers, who clapped for Han after his speech, went up to Woo to protest against his remarks.

The speech also came as the passage of the extra budget proposal had stalled at the Assembly after the government rolled out the plan last week to counter heightening economic risks, largely due to the uncertainties tied to the impact of the US tariffs. The proposal was submitted to the Assembly on Monday.

The ruling People Power Party and the main opposition Democratic Party kicked off their negotiations and review of the extra budget proposal the previous day. The parties agreed to compromise on a version of the proposal by May 1 and pass it in an upcoming plenary vote.

The Democratic Party, which holds a clear majority of seats in the 300-member Assembly, has proposed to increase the size of the extra budget to 15 trillion won. The party has said the proposal should include a cash subsidies program pushed by the former main opposition leader and current front-runner for the presidential nomination for the Democratic Party.

In December, the Assembly passed a downsized version of the 2025 government proposal, slashed by the majority party. It was the first time in Korea’s constitutional history that a budget plan submitted by the government passed in the plenary session without bipartisan agreement.