Hong Ihk-pyo says, "If the situation drags on, we cautiously foresee an additional supplementary budget in the second half of the year"

[Financial News] Hong Ihk-pyo, Senior Presidential Secretary for Political Affairs at Cheong Wa Dae, also known as the Blue House, said on the 5th, "If the situation in the Middle East becomes prolonged, we are cautiously forecasting that an additional supplementary budget may be needed in the second half of the year, even after this supplementary budget."
Hong made the remarks during an appearance on "Jung Woon-gap’s In-Depth Analysis" on Maeil Broadcasting Network (MBN), as he rebutted criticism from the People Power Party (PPP) that the supplementary budget bill now awaiting deliberation at the National Assembly of the Republic of Korea was designed with the June local elections in mind.
He noted that, following the recent war in the Middle East, domestic and international economic institutions have lowered their forecasts for South Korea’s economic growth rate for this year by around 0.4 percentage points. He also pointed out that, despite government measures such as cutting fuel taxes, gasoline prices are still in the mid-1,900 won range per liter.
He went on to explain, "We do not know how many more months the war in the Middle East will continue, and even if it ends, it will take at least three to four months for supply chains, including crude oil, to return to normal."
Regarding concerns in some quarters about possible shortages of pay-as-you-throw garbage bags due to instability in the supply of Naphtha, he stated, "There will be no major problems for about the next three months."
On the pressure from United States of America (USA) President Donald John Trump for South Korea and other allies to send troops to help secure the Strait of Hormuz, Hong said, "We remain very cautious at this stage," adding, "The USA has not officially requested that South Korea dispatch troops."
On the political debate over constitutional amendment, he said, "The People Power Party (PPP) has repeatedly said during elections that it supports including the May 18 Democratization Movement in the preamble, so I think this time we may be able to reach agreement on what is possible and pass it."
However, regarding the possibility of including changes to the power structure or the electoral system, he said, "Cheong Wa Dae does not yet have a clearly defined position on that part," and added, "The first priority is for the National Assembly of the Republic of Korea to engage in deeper deliberation and reach a consensus."
He continued, "The president also shares this view, namely that the Constitution of the Republic of Korea (1987 revision), which has already been in place for 40 years, should now be revised to reflect the changed reality and prepare for the future. We should not regard constitutional amendment as something excessively difficult," explaining, "It is very important to leave room for partial revisions when necessary, and in that sense, even a limited amendment to the Constitution during the June local elections would be a meaningful attempt."
cjk@fnnews.com Choi Jong-geun Reporter