Jang Dong-hyeok: "A 25 Trillion Won War-Time Supplementary Budget? Exchange Rate and Prices Will Soar"

According to Financial News, PPP leader Jang Dong-hyeok on the 23rd criticized the government and ruling party’s plan to draw up a 25 trillion won supplementary budget, saying, "At a time when a compound crisis of high exchange rates, high inflation and high oil prices is bearing down on us, if another 25 trillion won is pumped into the economy, the exchange rate and prices will quite literally skyrocket."
Speaking at a supreme council meeting held at the National Assembly of the Republic of Korea that day, Jang stated, "This is not the time for cash handouts."
He noted, "The Islamic Republic of Iran has followed its blockade of the Strait of Hormuz by striking Liquefied Natural Gas (LNG) facilities in the State of Qatar," adding, "Qatar has indicated that it could declare force majeure on contracts it has signed with South Korea."
He went on, "The government says there is no particular problem because the share of LNG imports from Qatar is not that large, but our LNG reserves amount to only nine days’ worth," stressing, "With international LNG prices surging, if we have to buy expensive LNG on the spot market, the burden of price increases across the board will inevitably grow."
He continued, "There are projections that if the blockade of the Strait of Hormuz lasts more than three months, LNG prices will jump 200% and average industrial production costs in our country will rise by 9.4%." He added, "The situation for Naphtha is even more serious. More than half of our Naphtha imports pass through the Strait of Hormuz, yet our domestic stockpile amounts to only about two weeks’ worth."
Jang said, "Even so, the president keeps harping on a so-called war-time supplementary budget for election purposes," urging, "We must focus on preventing an enormous compound crisis and stabilizing people’s livelihoods. Stop doing the electoral math and start properly looking after the national interest and ordinary people’s lives."
The ruling party, government and presidential office held a Senior Party-Government Council meeting the previous day and decided to draw up a 25 trillion won supplementary budget. The Democratic Party of Korea has set a plan to pass it at a plenary session of the National Assembly of the Republic of Korea on April 10. The supplementary budget is expected to include measures to respond to high oil prices, minimize industrial damage, stabilize supply chains and support vulnerable groups.
haeram@fnnews.com Lee Hae-ram Reporter