South Korea proposes $599 billion 2027 budget, to boost chips and defence spending
The plan sets aside 2.6 trillion won for semiconductors and 3.4 trillion won for strategic weapons as South Korea seeks higher tax revenue.
- On Tuesday, South Korea proposed a record 821 trillion won government budget for 2027, marking a 12.8 percent increase from 2026. President Lee Jae Myung reviewed the plan during a Cabinet meeting in Seoul.
- The Lee government designed the budget increase amid expectations of surging tax revenue stemming from a semiconductor boom. Officials seek to utilize these gains to bolster long-term economic stability.
- Budget Minister Park Hong-geun announced a 162.3 trillion-won Future Fund for "productive expenditures." The proposal also earmarks 2.6 trillion won for semiconductor support and 3.4 trillion won for strategic weapons, including a nuclear-powered submarine program.
- Following the Cabinet review, the proposal now requires parliamentary approval from the National Assembly. By law, the government must submit the budget at least 120 days before next year, making Thursday the deadline.
- While lawmakers prepare to finalize the budget by December, Lee warned that unavoidable interest rate hikes could dampen growth potential while the socially disadvantaged face higher borrowing costs.
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South Korea proposes $599 billion 2027 budget, to boost chips and defence spending
SEOUL, Sept 1 : South Korea on Tuesday proposed an 821 trillion won ($598.79 billion) government budget for 2027, including special funding for its semiconductor industry and strategic weapons, the budget minister said in a cabinet meeting. The government earmarked 2.6 trillion won for a special semiconductor
President Lee Jae-myung stated on the 1st, “Next year’s budget bill must serve as a solid stepping stone to propel the Republic of Korea into a leading nation with a super-gap.” During a Cabinet meeting held at the Blue House on that day, President Lee said, “The world is currently facing a critical turning point in the industrial order. The artificial intelligence (AI) revolution and the great energy transition, writing
Lee to preside over Cabinet meeting on 2027 government budget proposal
President Lee Jae Myung was set to preside over a Cabinet meeting Tuesday to review and approve the government's budget proposal for next year. The Lee government is seeking to draw up a budget exceeding 800 trillion won ($584.1 billion) for next year, up 10 percent or more from this year, amid expectations of increased tax revenue stemming from a semiconductor boom. By law, the government is required to submit its budget proposal to the Nationa…
The government has drawn up a budget of 9.2417 trillion won for next year. This represents an increase of 4.5901 trillion won (98.7%) compared to this year's budget. The plan is to concentrate resources on expanding investment in high-tech industries, supporting microfinance, and helping young people build assets. On the 1st, the Financial Services Commission announced the budget proposal for the 2027 fiscal year containing these details. The pr…
(Seoul = Yonhap News) Reporter Seol Seung-eun = On the 1st, at a Cabinet meeting presided over by President Lee Jae-myung at the Blue House, the government [planned] next year's budget bill, projected to be worth '800 trillion won + α'...
The most significant difference from previous years in the 2027 budget proposal is the establishment of a 'Future Response Fund' worth 162.3 trillion won (+α).
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