South Korea is preparing a 2027 national budget of more than 800 trillion won, with the government and ruling Democratic Party agreeing to concentrate spending on five broad priorities. The plan discussed on August 25 covers artificial intelligence and major industrial projects, future growth engines, support for young people, regional development and inequality, and public safety and security.
The jump in spending
The 2026 main budget is 729.9 trillion won, and the government has signaled that total spending next year will rise by more than 10%. That would push the budget above 800 trillion won and represent one of the fastest annual increases in years. The government is also planning targeted support for semiconductor infrastructure and other advanced industries as part of the package.
The figure is not yet the final enacted budget. The administration must complete the bill and submit it to the National Assembly, where lawmakers can revise spending priorities and individual programs. The September submission will provide the detailed allocations needed to judge how much of the headline increase goes to new programs and how much reflects existing commitments.