Asia News Wrap: South Korea drafts second budget, and more

Here are a few stories from around Asia you may have missed this week.

South Korea drafts second budget to spur growth

South Korea will implement a supplementary budget worth 20.2 trillion won ($14.7 billion) aimed at revitalizing domestic consumption and bolstering the economy, including the distribution of cash handouts to all citizens, the Finance Ministry said on Thursday. Finalized at a cabinet meeting chaired by President Lee Jae-myung just two weeks into his term, the plan marks the first extra budget under the new administration.

The supplementary budget plan totaling 30.5 trillion won includes 20.2 trillion won ($14.7 billion) of new spending to spur economic growth and support vulnerable sectors, while it will also make up for 10.3 trillion won from an expected shortfall in tax revenue. The biggest spending will be Lee's flagship policy of a universal cash handout scheme for consumers, providing 150,000-500,000 won in vouchers to every citizen and totaling 10.3 trillion won.

China's new crewed spaceship completes crucial abort test

China has fired its uncrewed next-generation spaceship, Mengzhou, to demonstrate its ability to propel astronauts to safety in case of an emergency. A zero-altitude escape flight test was conducted at the Jiuquan Satellite Launch Center in northwest China on Tuesday. The last such test, for China's Shenzhou spaceship, was conducted in 1998. 

An emergency escape system is critical for astronaut safety and the success of any crewed mission. Designed to activate the moment danger arises after astronauts are aboard the spacecraft, it provides a crucial last line of defense."This particular zero-altitude escape flight test verified the capability to escape if critical danger, such as a rocket explosion, occurs directly on the launch tower," Yang Yuguang, chair of the Space Transportation Committee of the International Astronautical Federation, told CGTN.

Vietnam to hike alcoholic drinks tax to 90% by 2031

Vietnam’s National Assembly on Saturday approved a proposal to raise the tax on alcoholic beverages to 90 percent by 2031 from the current 65 percent, a move that will add to challenges facing the industry.

Under the legislation, the tax rate on beer and strong liquor will rise to 70 percent by 2027, a year later than initially proposed, before reaching 90 percent in 2031. The Finance Ministry has said the higher taxes aim to curb alcohol consumption. 

Vietnam is Southeast Asia's second-largest beer market. Vietnam’s beer industry, led by Dutch brewer Heineken, has already faced challenges from stringent drink-driving laws introduced in 2019, which set a zero-alcohol limit for drivers.

Record summer heat in Japan

Japan issued multiple heat alerts across the country on Wednesday as temperatures soared to 36 degrees Celsius in Tokyo. Fifty-seven people were transported to hospital in the city for heat-related illnesses, according to the fire department. 

In June alone, record temperatures were logged in 14 weather stations across the country, said the Japan Meteorological Agency. The alerts come after record-breaking heat last summer resulted in the government passing tougher rules that require employers to take adequate protection from extreme temperatures. In 2024, there were 30 workplace deaths and roughly 1,200 injuries associated with high temperatures.

(Cover: South Korean President Lee Jae-myung presides over a state affairs meeting at the Yongsan Presidential Palace in Seoul, South Korea, June 10, 2025. /CFP)