{"id":109190,"date":"2024-12-10T14:11:02","date_gmt":"2024-12-10T10:11:02","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=109190"},"modified":"2024-12-10T14:11:06","modified_gmt":"2024-12-10T10:11:06","slug":"south-korea-passes-controversial-budget-bill-amid-political-turmoil","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/south-korea-passes-controversial-budget-bill-amid-political-turmoil\/12\/10\/market-updates\/","title":{"rendered":"South Korea Passes Controversial Budget Bill Amid Political Turmoil"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>South Korea&#8217;s parliament, controlled by the opposition Democratic Party, approved a reduced government budget for 2025, intensifying tensions with President Yoon Suk Yeol&#8217;s administration. The unprecedented move sparked debates over economic and governance implications in Asia&#8217;s fourth-largest economy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Key Developments<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>673.3 trillion won ($470.60 billion)<\/strong> budget was approved by a <strong>183-94 vote<\/strong>, slashing the government&#8217;s initial proposal of <strong>677.4 trillion won<\/strong>.<\/li>\n\n\n\n<li>This marks the first time a budget has been passed without consensus between the government and opposition parties.<\/li>\n\n\n\n<li>The Democratic Party justified the cuts by targeting reserve funds, interest costs, and classified operations related to the presidential office, prosecutors, and auditors.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Government Response<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The administration criticized the cuts, warning they could cripple essential government operations, delay support for small businesses, and hinder responses to economic challenges.<\/li>\n\n\n\n<li>President Yoon cited opposition resistance to budgets as a rationale for invoking a short-lived <strong>martial law decree<\/strong> on December 3, leading to a constitutional crisis.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Economic Implications<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Economists expressed concerns that reduced government spending could hamper South Korea&#8217;s fragile economic recovery.\n<ul class=\"wp-block-list\">\n<li><strong>Citi analysts<\/strong> estimate a <strong>0.02 percentage point reduction<\/strong> in annual growth due to the cuts.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>South Korea narrowly avoided a technical recession in Q3, grappling with slow export growth and weak domestic demand.<\/li>\n\n\n\n<li>The <strong>Bank of Korea<\/strong> projects economic growth to slow from <strong>2.2% in 2024<\/strong> to <strong>1.9% in 2025<\/strong> and <strong>1.8% in 2026<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Opposition Perspective<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Democratic Party Leader <strong>Lee Jae-myung<\/strong> called the swift passage essential to resolving &#8220;unease and crisis.&#8221;<\/li>\n\n\n\n<li>Senior lawmaker <strong>Park Chan-dae<\/strong> emphasized that necessary spending could later be addressed via an extra budget.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Speaker&#8217;s Comments<\/strong><\/h3>\n\n\n\n<p>Parliament Speaker <strong>Woo Won-shik<\/strong> criticized the government for its lack of cooperation during budget discussions, urging it to propose a supplementary budget for 2025.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Outlook<\/strong><\/h3>\n\n\n\n<p>The political discord adds uncertainty to South Korea&#8217;s economic trajectory, with analysts highlighting the risk of delayed policy measures at a critical time. Collaboration between parties will be crucial to mitigate the impact of reduced fiscal spending and bolster economic stability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Korea&#8217;s parliament, controlled by the opposition Democratic Party, approved a reduced government budget for 2025, intensifying tensions with President Yoon Suk Yeol&#8217;s administration. The unprecedented move sparked debates over economic and governance implications in Asia&#8217;s fourth-largest economy. Key Developments The 673.3 trillion won ($470.60 billion) budget was approved by a 183-94 vote, slashing the &hellip;<\/p>\n","protected":false},"author":9,"featured_media":95516,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[11256,8108],"class_list":["post-109190","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-eft","tag-south-korea"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=109190"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109190\/revisions"}],"predecessor-version":[{"id":109191,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/109190\/revisions\/109191"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/95516"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=109190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=109190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=109190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}