The government has emphasized the active role of next year's budget in supporting three major projects, artificial intelligence (AI), and expanding future growth engines. Plans include establishing a special account for semiconductors and supplying 10,000 central processing units (CPUs) to elevate the nation as a leader in AI and semiconductors.
After a budget meeting on August 25, Jeong Tae-ho, a Democratic Party lawmaker and the ruling party's representative on the National Assembly's Budget and Accounts Committee, told reporters, "Next year's budget will focus on significant investments in three major projects, AI, aerospace, and the bioindustry, as well as expanding support for youth growth, addressing K-shaped polarization, and enhancing public safety."
Specifically, in the areas of AI and the three major projects, the government plans to create an integrated support system through the special semiconductor account and develop AI solutions utilizing manufacturing know-how. The expansion of future growth engines will include comprehensive support for research and development (R&D) aimed at landing on the moon by 2030, increasing pilot areas for autonomous vehicles, and raising electric vehicle subsidies to record levels.
To support youth growth, a university internship program will be introduced, allowing students to earn credits for completing an internship during a semester. Additionally, a new "Our Children's Independence Fund" will be established to support asset formation for youth, providing up to 1.2 million won annually until the age of 18.
In response to K-shaped polarization, the government will promote special subsidies for growth engines, focusing on local-led growth. A special account for essential medical services in regions will be established to fully support tuition fees for local national universities. The government also plans to support the development of nuclear fusion submarines for public safety, along with proposals to increase salaries for junior military officers.
While the total size of next year's budget has not yet been finalized, it is expected to exceed a record 800 trillion won. The Ministry of Strategy and Finance previously indicated at a national fiscal strategy meeting last month that the total expenditure growth rate for next year would be over 10% compared to this year's budget of 729.9 trillion won, signaling a budget in the 800 trillion won range.
Han Byeong-do, the Democratic Party's floor leader, emphasized in his opening remarks, "Next year's budget must focus on securing leadership in future industries, ensuring sufficient groundwork for the success of the three major projects, and facilitating local-led growth that translates into regional industries and job creation."
Park Hong-geun, Minister of Strategy and Finance, stated, "At a time when structural low growth is becoming more complex, we will focus on driving a trend reversal in potential growth rates and ensuring that the benefits of growth are distributed across all generations, regions, and classes, including youth, small businesses, and vulnerable groups." He added, "To prevent the increased tax revenue from the semiconductor boom from being exhausted through temporary spending, we will establish a future response fund."
* This article has been translated by AI.
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