The Democratic Party and the government have 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 that will lead South Korea for the next 30 years, including the realization of three mega projects.
Han Byeong-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 initiated by Park Hong-geun, the Minister of Economy 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 reflect local-led growth and invigorate regional economies. He pledged that the party would provide strong support to ensure the budget protects citizens' lives and accelerates South Korea's transformation.
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 committed to closely coordinating the budget to address pressing issues such as youth employment and the K-shaped polarization affecting citizens' lives, as well as the climate crisis.
Han noted that 2027 marks the 30th anniversary of the foreign exchange crisis, with public fund repayments expected to conclude. He emphasized that the IMF bailout was successfully completed under the Kim Dae-jung administration, and the Lee Jae-myung administration will finally bring this chapter to a close, thanks to the efforts and dedication of the citizens.
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 reiterated that just because there will be significant additional tax revenue from the semiconductor boom, it does not mean inefficient projects will be revived.
He also outlined plans to reinvest the record additional tax revenue into areas such as youth, growth drivers, local economies, and education through a future response fund.
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 citizens' lives when reviewing it and promised to adhere to the legal deadlines.
* This article has been translated by AI.
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