South Korea’s parliament approves 2025 budget with historic cuts

South Korea’s opposition-led parliament approved on Tuesday a reduced government budget of 673.3 trillion won ($470.64 billion) for 2025, marking a significant cut from the government’s original proposal of 677.4 trillion won.

The budget bill passed by a 183-94 vote, with one abstention. The Democratic Party (DP), which holds a majority, spearheaded the 4.1 trillion won reduction. Key cuts targeted the government’s reserve fund and special activity expenses of the presidential office’s secretariat, national security office, prosecution, state audit agency, and police.

The decision followed a heated standoff between the DP and the ruling People Power Party (PPP), which had pushed to preserve the original proposal.

This marks a historic moment in South Korea’s constitutional history, as it is the first time a government-submitted budget was approved without bipartisan agreement in the plenary session.

Attribution: Reuters & Yonhap