South Korea has announced a revised economic stimulus package worth 12 trillion won (approximately $8.4 billion), aimed at strengthening its economy and assisting industries affected by newly imposed U.S. tariffs under President Donald Trump’s trade policy.
The updated proposal represents an increase of 2 trillion won ($1.4 billion) from an earlier plan, Deputy Prime Minister and Economy Minister Choi Sang-mok confirmed on Tuesday. Roughly one-third of the new budget will be directed toward supporting companies hit by global trade instability, as well as firms in the growing artificial intelligence sector.
Choi called on lawmakers to act swiftly, urging the National Assembly to approve the package without delay. “We need rapid parliamentary cooperation,” he emphasized. However, political dynamics could slow progress.
The country is in the midst of campaigning for a high-stakes presidential election scheduled for June 3, making cross-party consensus more difficult.
The election comes amid a volatile political landscape following the ousting of President Yoon Suk Yeol in a martial law controversy that continues to cause national unrest. In his place, Acting President Han Duck-soo is leading the country through the interim period.
In an exclusive interview with CNN last week, Han said South Korea “clearly would like to negotiate” with the United States and praised the “very strong alliance” between the two nations.
Despite Trump’s recent suspension of his “reciprocal” tariffs on dozens of countries—excluding China—South Korea continues to face several trade hurdles. These include a universal 10% levy, a metals tax, and additional tariffs on automobiles and auto parts exported to the U.S.
The new stimulus aims to cushion the blow from these tariffs while investing in future-oriented sectors like AI, which the government sees as critical to long-term economic resilience.
