Rival parties agree on $17.7 bil. extra budget bill to mitigate fallout from Mideast war

Han Byung-do, floor leader of the Democratic Party of Korea, and Song Eon-seok, floor leader of the People's Power Party, discuss the extra budget plan at the Kensington Hotel in Yeouido, Seoul, Friday. Yonhap

Rival parties agreed to pass an extra budget bill aimed at coping with the economic fallout from the ongoing war in the Middle East at a parliamentary plenary session later Friday.

The ruling Democratic Party of Korea(DPK) and the main opposition People Power Party (PPP) reached the agreement to keep the size of the supplementary budget at 26.2 trillion won ($17.7 billion), unchanged from the government's initial proposal.

The parties agreed to include in the budget the government's plan to distribute cash assistance to the bottom 70 percent of income earners designed to help ease the burden from rising oil prices.

If the bill is passed, about 35.8 million people will receive between 100,000 won and 600,000 won per person, with payments differentiated by income level and region.

The DPK and the PPP also agreed to allocate an additional 200 billion won to ensure the stable supply of naphtha, a key feedstock widely used in the petrochemical and other industries.

The extra budget aims to ease the burden of rising oil prices and protect small businesses and vulnerable households from the economic repercussions of the conflict.

The PPP has argued that the projects included in the bill are inconsistent with the purpose of the extra budget, calling for programs that provide direct assistance to those affected, while the DPK has urged the swift passage of the bill.

The National Assembly will hold a plenary session later in the day to process the bill.