The government and ruling party are finalizing plans for next year's budget, projected to be around 800 trillion won. This budget, the largest in history due to a semiconductor boom, aims to support the administration's key initiatives: three major projects and a leap in artificial intelligence (AI).
On the morning of August 25, the Democratic Party and the Budget Office held a meeting at the National Assembly to discuss their views on the budget.
After the meeting, Kwon Chil-seung, the policy committee chair, told reporters, "The Democratic Party and the government have agreed to actively invest in next year's budget for the great leap and transformation of South Korea," emphasizing that funds will be concentrated on the three major projects, AI, and addressing K-shaped polarization.
He also mentioned plans to expand local preferential projects, which were applied to some initiatives like child allowances in the 2026 budget, to contribute to local-led growth.
Jung Tae-ho, a lawmaker serving as the ruling party's secretary in the National Assembly's Budget and Accounts Committee, explained that the budget includes investments in physical AI development and the Korea Water Resources Corporation to secure water resources for establishing a K-semiconductor powerhouse.
He added that to overcome K-shaped polarization and promote local-led growth, the budget will introduce special grants for growth engines, providing substantial government support for initial equipment investments when anchor companies relocate to local areas.
Additionally, the budget will support youth growth through a 'college internship semester system' to help students gain experience before graduation and establish a 'Our Child Independence Fund' to assist with asset formation for young people, providing up to 1.2 million won annually until the age of 18.
Earlier, Han Byung-do, the floor leader of the Democratic Party, asserted in his opening remarks before the meeting that the budget for next year, utilizing excess tax revenue from the semiconductor boom, must adequately prepare the foundation necessary for the success of the three major projects, reiterating the consensus between the government and the ruling party on this goal.
Park Hong-geun, the Minister of the Budget Office, also stated that the government will actively support the three major projects, including semiconductors and physical AI, and invest in the necessary infrastructure, such as power, water resources, and industrial complexes.
He emphasized, "We will respond to K-shaped polarization and achieve growth for all," proposing measures such as support for asset formation throughout the life cycle and enhanced proactive support for vulnerable groups and families in caregiving crises.
* This article has been translated by AI.
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