[THE INVESTOR] Korea will need as much as 26.6 trillion won (US$22.5 billion) in supplementary budget to weather negative elements from external and internal economic conditions, a think-tank said on June 26.

In a report published on June 26, Hyundai Research Institute said that Korea needs between 11.5 trillion won and 26.6 trillion won in supplementary budget in order to offset negative factors from home and abroad. 




According to the report, Korea has about 113 trillion won remaining in this year’s budget that can be spent during the final six months of the year.

Comparing the budget executed in the second halves of 2014 and 2015, the think-tank said that minimum of 11.5 trillion won supplementary budget would be required.

On average, 124.5 trillion won of the budget was executed in the second half of 2014 and 2015.

In a scenario that includes a more vigorous efforts to shore up the economy on part of the government, the HRI said that 26.6 trillion won will be needed.

In addition to the scale of the supplementary budget, the think-tank emphasized that a supplementary budget must be drawn up as quickly as possible, and that the funds should be used for measures that can bring both short and mid-to-long term effects.

By Choi He-suk (cheesuk@heraldcorp.com)