Anchor: Finance Minister Hong Nam-ki officially announced plans to draw up the year's second extra budget, to provide targeted support for people hardest hit by the COVID-19 pandemic. The minister said there will be no deficit-covering bonds due to higher-than-expected tax revenue.
Choi You Sun reports.

Report: At a meeting with experts from economic institutions and investment banks on Friday, Finance Minister Hong Nam-ki said the government is considering a second extra budget for this year to achieve full post-pandemic recovery.

This is the first time that the government officially referred to the second budget, following calls from the ruling Democratic Party(DP) that the government needs to inject the funds by August.

Hong made clear that the government will be able to set aside the necessary budget without issuing deficit-covering bonds. Tax revenue for this year is estimated at 300 trillion won, about 17 trillion won higher than previous government predictions. Tax revenue for the first quarter alone was already 19 trillion won more than the same period last year. 

The minister stressed that the budget will be used for COVID-19 vaccines and other programs, stimulating domestic demand, creating jobs and assisting small businesses affected by social distancing.

This is in contrast to a second round of universal COVID-19 relief payouts currently under review within the ruling party, which along with other customized support are expected to require at least 30 trillion won. Observers say the minister specifically mentioned people hit hard by the pandemic to draw a line. 

Regarding policies for the second half of the year, Hong raised concerns over the socioeconomic gap that has widened since the start of the pandemic, calling for measures to protect and create jobs and reinforce social inclusion.

The minister also urged officials to take proactive steps to counter risk factors, such as inflation, household debt and real estate and external variables.
Choi You Sun, KBS World Radio News.