On July 21, the Democratic Party and the government reached a consensus on a record budget of over 800 trillion won for the upcoming year. They stated that the budget should serve as a catalyst for a national transformation aimed at securing growth drivers to lead South Korea for the next 30 years.
Han Byung-do, the acting party leader and floor leader, made these remarks during a government-party meeting on the 2027 budget held at the National Assembly. He noted that "the world is engaged in a silent war to secure key assets that will determine the future of artificial intelligence (AI)." This meeting was proposed by Park Hong-geun, the Minister of Strategy and Finance.
Han emphasized that the budget for next year is set to be the largest ever at 800 trillion won plus additional funds, with national tax revenue expected to reach a record 500 trillion won. He stressed the need for strategic investment resources to be actively utilized for future preparedness.
He also highlighted the necessity for bold and strategic investments to accelerate the implementation of the three mega projects, stating that the budget should significantly support local-led growth and invigorate regional economies. "We will spare no effort in supporting the budget to ensure it protects the lives of the people and accelerates South Korea's transformation," he said.
Policy Committee Chair Han Jeong-ae remarked that the Lee Jae-myung administration has set goals for a potential growth rate of 3%, becoming a top four exporter, and achieving a national income of $50,000. She pledged to closely coordinate the budget to address pressing issues such as youth employment and the K-shaped polarization in society, as well as the climate crisis.
Han noted that 2027 marks the 30th anniversary of the foreign exchange crisis, with public funds expected to be fully resolved. She recalled that the Kim Dae-jung administration graduated from IMF assistance, and the Lee Jae-myung administration will finally bring this chapter to a close, crediting the efforts and dedication of the public for making this possible.
Minister Park stated that next year's budget will be the first fully prepared by this government from start to finish, and it will involve the largest spending restructuring in history. The target for next year's fiscal spending restructuring is set at 50 trillion won, nearly double this year's target of 27 trillion won. Park added, "Just because we expect significant additional tax revenue from the semiconductor boom, we will not revert to inefficient projects."
He also outlined plans to reinvest in the youth, growth drivers, local economies, and education through a future response fund, given the record additional tax revenue from the semiconductor industry.
Lee Kwang-jae, chair of the National Assembly's Special Committee on Budget and Accounts, stated that he would consider how the budget will change the lives of citizens during the budget review process and promised to adhere to the legal deadlines.
* This article has been translated by AI.
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