President Lee Jae-myung stated that the 2027 budget proposal should serve as a solid stepping stone for South Korea to become a leading nation and as a catalyst for visible changes in the lives of citizens.
During a Cabinet meeting at the Blue House on September 1, President Lee remarked, "We are at a crossroads between persistent low growth and a rebound in potential growth rates."
The government reviewed the 2027 budget proposal, fund management plan, and the national fiscal management plan for 2026-2030 during the meeting. The general account expenditure for next year is set at 700.1 trillion won, a 37.9% increase from this year's budget, while expenditures from 22 special accounts will rise by 12.1% to 131.4 trillion won.
President Lee outlined key goals for the upcoming budget, including creating future growth drivers, establishing a ladder of hope for youth, effectively alleviating polarization, and strengthening the social safety net.
He emphasized that these efforts would lead to tangible results for citizens, such as the rapid advancement of three major mega projects, support of up to 200 million won per young person, the establishment of ten startup cities, the provision of 200,000 public housing units, and the expansion of basic income for rural and fishing communities.
Notably, President Lee stressed that the role of fiscal policy should not merely be about increasing spending but should focus on enhancing growth potential.
He stated, "A productive fiscal strategy that uses increased future resources to expand the economic pie and enhance industrial capabilities is essential to create a virtuous cycle of fiscal capacity."
He acknowledged that rising interest rates are unavoidable and urged that fiscal measures should minimize the suffering of vulnerable groups and ensure that growth potential is not compromised.
The government plans to establish a future response fund utilizing tax revenues that exceed long-term trends due to economic improvement and temporary surplus revenues. This fund aims to strengthen the fiscal response function while investing long-term in strategic areas such as artificial intelligence (AI).
As the regular National Assembly session begins, President Lee called for cooperation, stating, "If the National Assembly collects a wide range of public opinions during the budget review process and makes necessary adjustments, the government will actively respect those changes."
He expressed hope that the budget would create a sense of optimism among citizens, ensuring that "tomorrow will be better than today," and called for bipartisan cooperation.
President Lee also indicated that the government’s proposed policies and budget could be actively modified during the National Assembly discussions.
He acknowledged, "The government’s proposals are not always correct or perfect," and instructed each ministry to consider the insights and alternatives from the public and the National Assembly, incorporating reasonable suggestions into legislation and the budget without hesitation.
In preparation for Chuseok, he called for proactive measures to stabilize food prices. While noting that strong exports could push this year's economic growth rate above 3%, he recognized that rising prices for meat and vegetables continue to challenge citizens.
He pointed out that the combination of climate-related damage to crops and livestock and the earlier-than-usual Chuseok could exacerbate price instability for essential goods.
To alleviate the burden of grocery prices, he urged the active promotion of measures such as discounts on agricultural and marine products and the expansion of stockpiled supplies, while also ensuring comprehensive financial support for small businesses and medium-sized enterprises.
Despite the stabilization of exchange rates reducing the burden of raw material imports, he demanded the government actively monitor and respond to so-called "price gouging" where product prices are raised.
Additionally, he ordered the allocation of more resources for the search of South Korean citizens missing in Nepal due to flooding. President Lee stated, "The search for our nine missing citizens continues despite the challenging circumstances," and called for thorough efforts based on cooperation with the Nepalese government and relevant companies.
He urged that, if possible, additional rescue personnel and equipment, such as helicopters, be deployed, and emphasized the need to ensure the safety of local search teams in preparation for potential secondary flooding and adverse weather conditions. He also directed that humanitarian assistance to aid Nepal's recovery efforts be expedited.
* This article has been translated by AI.
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