Finance Minister Choi Sang-mok announced Tuesday that the government will roll out the details of its proposed supplementary budget worth 10 trillion won ($6.8 billion) next week. Roughly 3 trillion to 4 trillion won of the extra budget will be allocated to help the country respond to the US government's “reciprocal” tariffs.

“Further details of the supplementary budget will be revealed next week after finalizing the plan through a discussion with related departments,” Choi said at a meeting with economy-related ministers at Government Complex Seoul on Tuesday.

The announcement follows the government's previous proposal for a 10 trillion won supplementary budget last month. Choi had mentioned that additional financing is required to cope with a series of wildfires that ravaged the southeastern parts of Korea in late March, which engulfed more than 48,000 hectares of land in flames.

On Tuesday, Choi further added that the extra budget is required to help the country respond to changes in the trade environment.

"Wildfire relief is urgent, and we cannot stand idle when our industries and businesses are facing a serious blow from the tariff shock," Choi said.

“The supplementary budget will focus on supporting the swift restoration of damages caused by wildfires and their prevention,” Choi said, adding that part of the budget will be used to allocate related equipment such as drones and helicopters. He did not specify the amount.

Choi further added roughly 3 trillion to 4 trillion won of the budget would be put aside to respond to the changes in the trade environment following the US government's introduction of "reciprocal" tariffs and strengthen the nation’s competence in artificial intelligence.

"The US' announcement of 'reciprocal' tariffs, which surpassed our expectations, could cause serious damages to our industries and businesses. The volatility in global stock markets has escalated significantly, and our financial and forex markets are also being affected," Choi said.

“We will set up new subsidiaries for materials, parts and equipment productions in high-tech industries to stabilize the supply chain of key items. We will also secure subsidiaries for ‘U-turn companies’ (companies returning production to the country) and foreign-invested companies.”

Another 3 trillion to 4 trillion won will be allocated to support small merchants.

“We will expand policy financing through providing low-interest rate loans to ease the burden on small merchants and seek to boost consumption in the private sector and the underserved,” he said.

“I request the National Assembly to swiftly discuss the budget and handle the process to secure the 'golden time' to revive the country’s industries and businesses.”

By Im Eun-byel (silverstar@heraldcorp.com)