President Lee says it's time for gov't to spend: 20.2 trillion KRW supplementary bill explained

South Korea has drawn up its first extra budget under the brand new government with the ultimate goal of stimulating economic recovery.

The budget also includes cash handouts to all citizens.

Our correspondent Kim Do-yeon explains more.

The second round of a supplementary budget bill this year, the first of its kind under Lee Jae Myung's presidency, has been drafted and is set to go to the National Assembly next week.

President Lee, presiding over a Cabinet meeting on Thursday, took a final look.

The size of this supplementary budget is 30.5 trillion Korean won, or a bit more than 22 billion U.S. dollars.

15.2 trillion of that will be going into boosting the economy through stimulus.

5 trillion will be going to stabilizing people's livelihoods.

10.3 will be for revenue adjustment, for the nation's fiscal situation.

This means, 20.2 trillion will be for direct spending by the government with 19.8 trillion being debt.

Going into the details 15.2 trillion for economic stimulus will consist of 10.3 trillion of that being cash relief to everyone, in a different form of the recipient's choosing.

1 trillion will go into boosting discounts and other needed aspects.

2.7 trillion will go into support for the construction sector as it's currently one of the hardest hit industries with close links to the employment of working-class citizens.

President Lee has been pushing for cash relief to everyone for some time now, since his lawmaker days.

The conservative government had been saying a universal payout is not right due to the financial pressure on the nation's fiscal status, and selective support is better.

This draft did go with a universal payout but for those who need it, the more they will receive.

The top 10-percent, approximately 5.12 million people, will receive a one-time payment of 150,000 Korean won, or around a 100 U.S. dollars.

And the biggest group of citizens of around 43 million people will receive the first payment of 150,000 Korean won, but will get an additional 100,000 in the second round.

The lower levels will receive more in first-time payments, with the social welfare recipients later getting 500,000 in total

As for stabilizing livelihoods, money will be spent on debt relief for small businesses as well as boosting employment and taming inflation.

Now, the ball is in the National Assembly's court with the government's draft being transferred on the 23rd.

Lawmakers will be reviewing the bill, but with the ruling Democratic Party holding the majority on the floor, the bill won't face many obstacles.

Kim Do-yeon, Arirang News.