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Critics Express Doubts over Lee's Plan for Universal Basic Income of 250,000 Won

The proposed additional budget of around 20 trillion won ($14.8 billion) by the Lee Jae-myung administration, which includes cash distributions, stirs discussions, yet experts caution against this move.

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Government of Lee Jae-myung contemplates a supplementary budget estimated at around 20 trillion won...
Government of Lee Jae-myung contemplates a supplementary budget estimated at around 20 trillion won ($14.8 billion), with plans for cash disbursements; however, financial experts offer warnings against the move.

Critics Express Doubts over Lee's Plan for Universal Basic Income of 250,000 Won

Revamped Perspective on Seoul's Economy in 2025

The Economic Landscape of Contemporary Seoul, South Korea

Economic Hurdles

  • GDP Growth: The South Korean economy is grappling with a rough ride in 2025, facing reduced growth projections from several major economic entities. The Korea Institute for Industrial Economics and Trade (KIET) and the International Monetary Fund (IMF) predict growth similar to a snail's pace at approximately 1%, while the Bank of Korea (BOK) projects a lower rate of 0.8%. [1][2][5]
  • Export Woes: Exports are expected to take a tumble, projected to dip by 1.9%, mainly due to faltering global demand and trepidation over U.S. tariff policies. [2]
  • Domestic Dwindle: The economy is struggling with weak domestic demand, characterized by a downturn in private consumption and construction investment. The economy even contracted by 0.2% in the first quarter of 2025. [3][4]
  • Semiconductors and Biohealth: Despite the general export decline, the semiconductor sector is poised to surge by 5.8%, with biohealth products following closely with a 11% increase. [2]
  • Struggling Sectors: Sectors like chemical products and machinery exports have shown signs of weakness, along with a decline in facility investment, exacerbating the economic slump. [3]

President Lee Jae-myung's Tactics

  • New Economic Boosters: In response to the economic contraction, President Lee Jae-myung is designing a fresh wave of stimulus packages to energize domestic demand and steady the economy. [3]
  • Emergency Economic Actions: The president is all set to implement emergency fiscal measures to tackle the economic challenges, armed with responses to recent GDP contractions. [3]

In essence, President Lee Jae-myung is keen on resolving the economic downturn by mobilizing fiscal measures to spur domestic demand and stabilize the economy. However, the robustness of global demand and domestic consumption remains formidable obstacles on the path to recovery.

  1. The government, under President Lee Jae-myung, aims to revitalize the economy by implementing stimulus packages to boost domestic demand and maintain stability.
  2. The South Korean economy's growth is projected to be sluggish in 2025, with the Bank of Korea predicting a rate of 0.8%, and the KIET and the IMF anticipating growth similarly slow.
  3. The finance sector will play a crucial role in the president's strategies, as he plans to use emergency fiscal measures to address the economic challenges.
  4. Industries like semiconductors and biohealth are forecasted to experience growth, while sectors such as chemical products, machinery exports, and facility investment show signs of weakness, potentially exacerbating the economic predicament.

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