The South Korean government has been cleared to inject 7.7 trillion won ($6.91 billion) over the next two months after the National Assembly finally passed a near $10 billion supplementary budget packaged by the new government under President Moon Jae-in aimed to increase public-sector jobs to stimulate income and similar moves in the private sector.

The bill calls for additional budgetary spending of 11.03 trillion won ($9.9 billion), slightly scaled down from initially proposed 11.19 trillion won.

During review, the government accepted the opposite party’s demand to cut an 8 billion won budget for government job creation budget and agreed to create 2,575 public jobs, not as many as 4,000 that it initially proposed.

With the revised budget plan, the government still expects about 110,000 jobs in the public and private sectors would be added. An increase in the public sector employment and support for the small and medium sized businesses is expected to create 84,000 jobs, and job training and business start-up education would lead to the indirect creation of 2,400 jobs, according to the government.

The government and the assembly also agreed to up spending on support for low-income class in housing, with additional 747.5 billion won allocated to help young people and the newly married couples raise the money for leasing or buying a house.

The scheme also includes an increase of 30 billion won for improving old public rental housing conditions, 20.4 billion won for assisting activities of the disabled, 3.0 billion won for improving air quality, and 600 million won for supporting the traditional markets.

The government aims to execute 70 percent, or 7.7 trillion won, of the extra budget before Chuseok holiday, the country’s one of two biggest national holidays, in early October.

The opposition-majority legislative passed the new government’s first extra spending proposal 45 days after it was submitted. Opposition parties except for the main opposition Liberal Korea Party attended the session to pass the bill.

By Yoon Won-sup and Chun Jung-hong

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]