The Unification Ministry's budget proposal for 2027 is set at 1.2549 trillion won, reflecting an increase of 10.2 billion won, or 0.82%, from this year. However, the budget for economic cooperation loans has been significantly raised from approximately 59 billion won to 199.4 billion won, more than tripling the allocation. In contrast, funding for humanitarian issues, including aid to North Korea and civilian cooperation, has been reduced by 100.1 billion won.
The Unification Ministry announced on September 1 that it plans to submit the 2027 budget proposal to the National Assembly on September 3, following approval at a Cabinet meeting.
The total expenditure for the Unification Ministry next year will consist of 243.4 billion won from the general account and 1.0115 trillion won from the Inter-Korean Cooperation Fund. The general account will see an increase of 10 billion won (0.4%) from this year's 242.4 billion won, while the Inter-Korean Cooperation Fund will rise by 9.2 billion won (0.91%) from 1.0103 trillion won.
The budget for the Inter-Korean Cooperation Fund's projects will increase from this year's 1.0101 trillion won to 1.0104 trillion won, marking a rise of 9.3 billion won (0.93%). The Unification Ministry explained that the allocation reflects the government's commitment to resuming inter-Korean exchanges and cooperation.
The most significant increase is seen in the economic cooperation loans, which will rise by 140.4 billion won (237.7%) from 59 billion won this year to 199.4 billion won next year. This budget, which had been reduced to 59 billion won after maintaining around 200 billion won until 2022, is now being restored to nearly that level.
These funds are intended for loans that can be used for economic cooperation projects, such as railways and roads, once an agreement is reached between the two Koreas. Consequently, the overall budget for building a foundation for inter-Korean relations will increase from 303.5 billion won to 410.8 billion won, a rise of 107.2 billion won (35.3%).
Conversely, the budget for humanitarian issues will decrease from 681 billion won to 580.9 billion won, a reduction of 100.1 billion won (14.7%). The budget for aid support will drop from 112.2 billion won to 95.4 billion won, a decrease of 16.8 billion won, while funding for civilian cooperation, including support for infants, healthcare, and agriculture, will be cut from 555.4 billion won to 472.1 billion won, a reduction of 83.3 billion won. Nevertheless, the humanitarian sector will still account for 57.6% of the total Inter-Korean Cooperation Fund budget.
The budget for non-repayable support for economic cooperation will also decrease from 220.9 billion won to 187.8 billion won, a drop of 33.1 billion won (15%). As a result, next year's Inter-Korean Cooperation Fund will see reductions in non-repayable and humanitarian support while significantly increasing the funds available for actual project resumption.
Support for inter-Korean social and cultural exchanges will increase from 10.4 billion won to 12.3 billion won, an increase of 1.9 billion won (18.8%). Additional funding includes 1.3 billion won for the compilation of the Korean Language Dictionary and 600 million won for the exhibition project at Gaeseong Manwoldae.
In the general account, the budget for peace, unification, and democratic citizen education will rise from 15.9 billion won to 25.3 billion won, an increase of 9.4 billion won (58.9%). The budget for supporting the activities of peace and unification education committee members will increase from 1 billion won to 7.1 billion won to expand the number of committee members from 1,000 to 4,000, with plans to appoint an additional 10,000 by the end of the year.
The target for the 'Visiting School Peace and Unification Education' program will expand from 480 schools to 840 schools, with the budget increasing from 780 million won to 1.56 billion won. The number of leading universities for peace and unification education will also grow from 12 to 22, with related funding rising from 2.08 billion won to 3.48 billion won.
The operating budget for the Northeast Asia Peace Documentation Center, set to open early next year, will increase from 1.6 billion won to 15.6 billion won, a rise of 14 billion won. Additionally, 700 million won has been newly allocated for strengthening the foundation for the disclosure of North Korean materials. However, the construction cost of 14.7 billion won will be fully deducted as the center's construction is expected to be completed this year.
A new allocation of 2.9 billion won has been designated for converting the Hwacheon Second Hanawon into a vocational training and psychological therapy center for North Korean defectors, as well as providing medical services to local residents. Overall funding for North Korean settlement support will decrease from 81.1 billion won to 77.5 billion won, a reduction of 3.6 billion won (4.5%).
The budget for DMZ experience and cultural events will increase nearly fourfold from 3.8 billion won to 14.6 billion won. A new allocation of 534 million won has been set for the Peace Unification Marathon project, and funding for the DMZ International Forum will rise from 1.5 billion won to 4 billion won. The Inter-Korean Cooperation Fund will also include 428 million won for the operation of the 'DMZ Peace Train,' which aims to run eight times a month next year.
Funding for the North Korean Human Rights Foundation will decrease from 475 million won this year to 50 million won next year, a reduction of 89.5%. The budget for establishing and promoting policies for improving North Korean human rights will also decrease from 378 million won to 346 million won, a drop of 32 million won.
The Unification Ministry announced on September 1 that it plans to submit the 2027 budget proposal to the National Assembly on September 3, following approval at a Cabinet meeting.
The total expenditure for the Unification Ministry next year will consist of 243.4 billion won from the general account and 1.0115 trillion won from the Inter-Korean Cooperation Fund. The general account will see an increase of 10 billion won (0.4%) from this year's 242.4 billion won, while the Inter-Korean Cooperation Fund will rise by 9.2 billion won (0.91%) from 1.0103 trillion won.
The budget for the Inter-Korean Cooperation Fund's projects will increase from this year's 1.0101 trillion won to 1.0104 trillion won, marking a rise of 9.3 billion won (0.93%). The Unification Ministry explained that the allocation reflects the government's commitment to resuming inter-Korean exchanges and cooperation.
The most significant increase is seen in the economic cooperation loans, which will rise by 140.4 billion won (237.7%) from 59 billion won this year to 199.4 billion won next year. This budget, which had been reduced to 59 billion won after maintaining around 200 billion won until 2022, is now being restored to nearly that level.
These funds are intended for loans that can be used for economic cooperation projects, such as railways and roads, once an agreement is reached between the two Koreas. Consequently, the overall budget for building a foundation for inter-Korean relations will increase from 303.5 billion won to 410.8 billion won, a rise of 107.2 billion won (35.3%).
Conversely, the budget for humanitarian issues will decrease from 681 billion won to 580.9 billion won, a reduction of 100.1 billion won (14.7%). The budget for aid support will drop from 112.2 billion won to 95.4 billion won, a decrease of 16.8 billion won, while funding for civilian cooperation, including support for infants, healthcare, and agriculture, will be cut from 555.4 billion won to 472.1 billion won, a reduction of 83.3 billion won. Nevertheless, the humanitarian sector will still account for 57.6% of the total Inter-Korean Cooperation Fund budget.
The budget for non-repayable support for economic cooperation will also decrease from 220.9 billion won to 187.8 billion won, a drop of 33.1 billion won (15%). As a result, next year's Inter-Korean Cooperation Fund will see reductions in non-repayable and humanitarian support while significantly increasing the funds available for actual project resumption.
Support for inter-Korean social and cultural exchanges will increase from 10.4 billion won to 12.3 billion won, an increase of 1.9 billion won (18.8%). Additional funding includes 1.3 billion won for the compilation of the Korean Language Dictionary and 600 million won for the exhibition project at Gaeseong Manwoldae.
In the general account, the budget for peace, unification, and democratic citizen education will rise from 15.9 billion won to 25.3 billion won, an increase of 9.4 billion won (58.9%). The budget for supporting the activities of peace and unification education committee members will increase from 1 billion won to 7.1 billion won to expand the number of committee members from 1,000 to 4,000, with plans to appoint an additional 10,000 by the end of the year.
The target for the 'Visiting School Peace and Unification Education' program will expand from 480 schools to 840 schools, with the budget increasing from 780 million won to 1.56 billion won. The number of leading universities for peace and unification education will also grow from 12 to 22, with related funding rising from 2.08 billion won to 3.48 billion won.
The operating budget for the Northeast Asia Peace Documentation Center, set to open early next year, will increase from 1.6 billion won to 15.6 billion won, a rise of 14 billion won. Additionally, 700 million won has been newly allocated for strengthening the foundation for the disclosure of North Korean materials. However, the construction cost of 14.7 billion won will be fully deducted as the center's construction is expected to be completed this year.
A new allocation of 2.9 billion won has been designated for converting the Hwacheon Second Hanawon into a vocational training and psychological therapy center for North Korean defectors, as well as providing medical services to local residents. Overall funding for North Korean settlement support will decrease from 81.1 billion won to 77.5 billion won, a reduction of 3.6 billion won (4.5%).
The budget for DMZ experience and cultural events will increase nearly fourfold from 3.8 billion won to 14.6 billion won. A new allocation of 534 million won has been set for the Peace Unification Marathon project, and funding for the DMZ International Forum will rise from 1.5 billion won to 4 billion won. The Inter-Korean Cooperation Fund will also include 428 million won for the operation of the 'DMZ Peace Train,' which aims to run eight times a month next year.
Funding for the North Korean Human Rights Foundation will decrease from 475 million won this year to 50 million won next year, a reduction of 89.5%. The budget for establishing and promoting policies for improving North Korean human rights will also decrease from 378 million won to 346 million won, a drop of 32 million won.
* This article has been translated by AI.
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