South Korean President Lee Jae-myung urged the parliament on June 26 to swiftly approve a 30.5 trillion won ($22.5 billion) extra budget to address the country's critical economic challenges.

"I believe that prompt preparation and swift execution of the extra budget are crucial to reinvigorate our economy, especially the domestic market," said Lee, in his first budget speech to the National Assembly.

Citing challenges such as sluggish export, weak domestic demand, US tariffs and the Israel-Iran war, Lee said South Korea is facing a dire economic situation due to both internal and external factors.

"If the current low growth persists, the door of opportunity will narrow, leading to a vicious cycle of heightened competition and conflict," Lee said, noting that recovering the faltering economy and reviving people's livelihoods are the most pressing tasks the government must tackle.

The extra budget proposal includes 11.3 trillion won to stimulate consumption, 3.9 trillion won to promote investment, 5 trillion won to support small business owners and vulnerable groups, and 10.3 trillion won in revised revenue projections.

Lee said the government will spend 13 trillion won to provide livelihood recovery consumption coupons that will be allocated to all citizens, with each person receiving 150,000 to 520,000 won based on income level and location.

Lee called for cooperation between the ruling and opposition parties in passing the budget plan.

"When it comes to saving the economy and improving livelihoods, there can be no division between the ruling and opposition parties," he said.

Lee said it is important to forge new growth engines and pursue "fair growth", where growth opportunities and outcomes are shared to alleviate polarization and inequality.

He also stressed the need to invest in cutting-edge industries such as artificial intelligence, semiconductors, and renewable energy.

On diplomacy, Lee said wise responses should be made to changes in the global order, including trade and supply chain issues, through a pragmatic, interest-centered approach.

In addition, "ensuring peace and stability on the Korean Peninsula is of paramount importance," he said, noting peace is the foundation of people's livelihood and economic development.

Since the launch of the new government, Lee said political uncertainty has eased and consumer sentiment has improved significantly.

Lee began his single five-year presidential term in early June after winning a snap election following the impeachment of his predecessor Yoon Suk-yeol over his short-lived martial law declaration in December.

Lee's public approval rating rose to 62 percent on Thursday, according to Yonhap News Agency, citing a poll conducted by the National Barometer Survey from Monday to Wednesday. The rating rose 9 percentage points from the previous poll conducted two weeks ago.

With a spirit of practicality, the new government will focus on safeguarding the lives of the citizens and open a new path for economic recovery and growth, Lee said.

kelly@chinadailyapac.com